Lower prices of flour, oil and salt, but not bread

The prices of flour, edible sunflower oil and salt should be lower due to the reduced amount of value added tax (VAT), although there is no clear legal obligation for traders to do so. The prices of bread, on which the amount of VAT of seven percent remains, will not be lower because until now bakers have had the right to refund the amount of VAT paid on flour when they sell bread to a trader, so their costs remain the same, the source of "Vijesti" said. ” from trade.

He said that if the Government and the deputies wanted to lower the price of bread, then they had to lower the VAT for it from the current seven percent to zero.

"When a consumer now buys bread and pays VAT in the price, he has also paid VAT on all its ingredients. Until now, bakers paid VAT on flour, and when they made bread and sold it to a retailer, the retailer paid VAT on that price, and the consumer on the final price. Then the merchant and the baker were entitled to a refund of part of the VAT. Now, bakers will not pay VAT on flour, but they will not get a refund of that amount of VAT when the bread is sold and the final amount of VAT is collected. That is, merchants will have the same costs as before, and the entire amount of VAT on sold bread will go to the state", said the interlocutor of "Vijesti".

The Baking Industry Committee of the Chamber of Commerce previously proposed to the now former Government to introduce a zero VAT rate on bread as well as on flour, so that prices could be lower, but this was not accepted at the time.

On Thursday, the Parliament adopted an amendment to the VAT law, which reduced this tax on flour and oil from seven to zero percent, and on salt from 21 to seven percent. The law was published in the "Official Gazette" on Friday with the date of entry into force on that day, i.e. from midnight on Friday to Saturday. This reduction in VAT would mean lowering the prices of flour by about 4-5 cents, oil by 12 to 15 cents, and salt by seven to eight cents.

Most of the traders already lowered the price of these foods on Saturday, although they do not have such a legal obligation, they only have to calculate the new VAT amount of zero percent in the price on the final bill.

"Vijesti" sent questions to the largest retail chains regarding whether, due to the reduction of VAT, they will correct prices for consumers by the amount of VAT reduction.

Only "France" and "Aroma - Domača trgovina" replied that they had already corrected the prices by the amount of the VAT rate. Other retail chains did not respond or announced a response for today.

"Vijesti" also asked the Directorate for Inspection Affairs in relation to whether the market inspection will control the shops, whether they have reduced the final prices for consumers by the amount of reduced VAT. They answered that control of the application of the Value Added Tax Act is the responsibility of the Revenue and Customs Administration, and that the Market Inspection conducts price controls only in accordance with the Consumer Protection Act.

The board supported the proposal on limiting prices

Yesterday, the Parliamentary Committee for Economy supported the Bill on temporary measures to limit the prices of products of special importance for people's life and health, and today it should be adopted by the Legislative Committee, after which it will be forwarded to the Parliament for adoption.

That draft law was prepared by the previous Government, that is, the Ministry of Economic Development (MER), and the new Government decided at the session on May 5 that it would stick with the proposed act.

The law enables the Government to create a list of products whose prices will be limited by its decisions in the event of market disturbances.

Newly elected Minister of Economic Development Goran Đurović at the session, he said that the products that will be on the list will depend on the Government's assessment at the given moment, and that the measures that the Government can prescribe in order to limit prices, refer to the determination of the maximum retail price, the fixed price of the product and the margin.

MPs from both the government and the opposition have assessed that the adoption of this law was delayed due to high inflation. They said that they will vote for this law, but they doubt its implementation, because the law does not contain concrete measures, that is, the category of products to which it applies, and they blame the government for not yet preparing secondary legal acts.

Member of the Social Democratic Party Boris Mugoša said that adequate inspection control over stores will not be successfully carried out, and suggested that a categorical list of products be determined already.

Đurović replied that at this moment it is better to have a wider possibility for the Government to subsequently determine the list of products.

Damir Sehovic from the SD reminded the statement of Đurović, in the televised debate with the former minister Jakov Milatović, when he argued that this law was unenforceable and asked him why he changed his mind.

Đurović said that he did not know the details at the time, and that his colleagues informed him that this law provides the possibility of price restrictions, and that it is present in the countries of the region and the European Union.

He also stated that he will determine the maximum product price and margin in agreement with businessmen, because he wants to help citizens and not destroy the economy.

Damjanović: I expect price growth to stop

Minister of Finance Aleksandar Damjanović he told "Vijesti" that he expects merchants and bakers to contribute to stopping the rise in prices and help the citizens, together with the Government.

"The government will find ways and space to help businessmen who are ready to participate in the stabilization of the market of basic foodstuffs", said Damjanović.

He stated that the Ministry of Finance (MoF) and the Government implemented the legal obligation in the shortest possible time, making an appropriate decision that will mitigate to some extent the latest price shock, caused by the increase in the stock price of oil.

"With the reduction of VAT for flour and oil, which will also result in stopping the spiral of price increases, the first concrete steps have been taken to preserve the living standards of our citizens. Bearing in mind the possibility of continuation of negative trends in the food market, that is energy products, the Ministry of Finance and the Government will be ready for new legal measures in order to mitigate the consequences of possible new collections", said Damjanović.

Eurodiesel is 1,62 euros, and gasoline is 1,55 and 1,59 euros

Yesterday, based on the amendments to the law on excise duties that came into force on Friday, the government made a decision to reduce excise duty on fuel by 40 percent, so that this amount was calculated for the first time today in the prices that will be valid for the next 14 days.

The calculation took into account the decrease in the amount of excise duties, but also the increase in the prices of oil derivatives on the international market and the exchange rate of the dollar against the euro, so fuel prices are lower by 14 to 18 cents.

A liter of Eurodiesel is cheaper by 14 cents, and its new price is 1,62 euros, while the prices of two types of gasoline have been reduced by 18 cents, so Super 95 costs 1,55 euros and Super 98 has dropped to 1,59 euros.