The Voli company called on the Government to reduce duties to the level of those that exist in the European Union, so that there will be room for lower prices in Montenegro.
Regarding the call to boycott their markets, they said that they have the lowest prices in Montenegro, and they question whether the organization of the boycott is really motivated by consumer interests or some other motives that have nothing to do with trade or the economy.
The Alternative Montenegro organization announced that it would call on citizens to boycott the markets of a certain retail company for seven days and organized a poll for citizens to choose which company it would be by tomorrow. According to current results, 64 percent of survey participants voted for Voli.
We are publishing the statement from this retail chain in its entirety:
"We would like to remind you that Voli Company has previously addressed the public several times regarding pricing issues, but respecting consumers' right to boycott, we have not made any statements on this specific issue so far. We have now concluded that it is necessary to present facts that will allow citizens to see the real picture and thus be properly informed.
Creating a situation in which retail chains are the sole culprits for inflation is just a distraction from other problems.
We agree that prices are too high, but prices in markets are not the cause of inflation, they are its consequence.
We call on the public to listen to the word of the profession, which has been spoken repeatedly - a continued boycott cannot bring anything good to anyone: neither to the economy of our country, nor to employees in the trade sector, nor to suppliers, domestic producers, especially domestic agricultural producers, and therefore not to the citizens of Montenegro.
The Government of Montenegro itself has admitted that prices in Voli are lower than prices in Serbia and Croatia, and everything is available on the Government's website. We have the lowest gross margin in the region, which the Government of Montenegro has also admitted. Here is the evidence for that: https://www.gov.me/dokumenta/9c28aba7-f9bb-4c0e-855f-ca6c1eb8c0f3
Believe it or not, it is important to point out that in Croatia, duties are lower and margins are higher than in Montenegro, where we have lower margins and higher state levies:
Figure 1: Tax rates in Montenegro compared to Croatia (EU country):
Reduced VAT rate on basic products for human consumption: in Croatia 5%, in Montenegro 7% For product groups Fish, including Fruits and vegetables In Croatia, the VAT rate is 5%, and in Montenegro, the rate is 21% for the same products.
Figure 2: Tax burden in Montenegro compared to Croatia (EU country)
Figure 3: Product groups with the highest tax burden: the case of Voli
Notes: 15 product groups where there is a burden: a total of 22.141 items, of which 8.951 items have some type of burden (excise duty and/or customs duty)
Loaded items account for an average of 42% of sales across all categories listed.
- The "Limited Prices" campaign showed that limiting margins did not significantly reduce prices, because margins on basic foodstuffs are at the lower limit of profitability.
- Salaries at Voli have been increased several times since 2021, and our salary budget has increased from 19 million euros the previous year to 30 million euros last year.
- For decades, we have been donating and participating in humanitarian actions, supporting and participating in education, healthcare, culture, and sports.
- We have no unpaid salaries or outstanding obligations to the state and suppliers.
People who do not know the laws of economics and the market make superficial statements in the media that confuse citizens and consciously lead them to wrong conclusions.
As a company on whose functioning tens of thousands of people depend, both directly and indirectly, we have a special responsibility. We also have a responsibility towards our consumers and we understand their dissatisfaction and desire for something to change as soon as possible.
However, attacking the largest and most successful retail chain with the cheapest prices and the best assortment cannot bring anything good.
Voli has the lowest prices and will continue to do so in the future. We will, as before, be focused on our business in the interests of our employees, loyal consumers and the entire Montenegrin economy and society.
For three full decades, Voli has had the lowest prices, the best offer, proven quality and respect for hygiene standards, our markets and our team are, we can safely say, the best in Montenegro. If it weren't for our managerial approach, logistics, procurement and our investments, prices in Montenegro would be even higher.
We will use specific examples to show the reason for high prices:
We call on the Government of Montenegro to reduce taxes that should be at the level of European Union countries. So far, we have always extended a partner's hand to the Government, both directly and through the Chamber of Commerce, through various actions such as "Stop Inflation" and "Limited Prices", and on our part there is a will to continue in the future.
We ask the key question: Are consumer interests really hidden behind the organization of the boycott, or are there other motives that have nothing to do with trade or the economy?
The Management of the VOLI Company.
Bonus video:
