The value-added tax (VAT) on meat products, fish, fruit and vegetables should be reduced from 21 to seven percent. Representatives of the ministries of finance, economic development and agriculture must sit down with food producers, traders, importers and distributors to find a systemic solution to curb high prices.
These are the conclusions of yesterday's roundtable organized by the Center for Consumer Protection (CEZAP), in which representatives of the Ministries of Economic Development and Agriculture, the largest retail chains, importers, manufacturers, the Agency for the Protection of Competition, the Chamber of Commerce, the Market Inspection, etc. participated. The only ones who did not respond were the Ministry of Finance and representatives of distributors.
President of CEZAP Olga Nikcevic She said that citizens are concerned about high prices, which is why they decided to organize this meeting to find a solution and bring about a price reduction.
"The boycott of retail chains did not achieve its goal. We organized this roundtable to help us jointly reach the goal that consumers rightly expect. I expect that concrete solutions will emerge from the discussion and that everyone will sacrifice a piece of their pie in order to achieve price reductions," said Nikčević.
Legal advisor to CEZAP Miloš Vukčević He said that the goal was to reach an agreement between the government and the economy on finding a systemic solution to lower prices, and that they were very sorry that representatives of the Ministry of Finance did not respond to the call. He stated that the boycott did not achieve its goal, but that a study by the Faculty of Economics showed that the sum of all duties and margins of importers, distributors and traders increases the initial import price by two and a half to three times, that is, something that originally cost one euro ends up costing the consumer two and a half or three euros.
Jasna Vujović from the Ministry of Economic Development said that their "limited price" actions had yielded results, that there had been a certain reduction in prices, and that a decision on the formation of commodity reserves was being prepared.
Owner of “MI Goranović” Đorđe Goranović He said that "in Montenegro we always deal with consequences, not causes."
"We must strengthen domestic production because only it can amortize high import prices," said Goranović, stating that we have high duties on some foodstuffs, which is why he proposed that, following the example of neighboring countries and EU members, VAT rates be reduced from 21 to seven percent for meat products, fish, fruit and vegetables, and that this would reduce their prices by 14 percent.
Slavica Pavlović from the Chamber of Commerce said that talks must be intensified, that a boycott is not a solution because it also significantly affects domestic producers.
Co-owner of “Volija” Dragan Bokan He said he was disappointed that there were no representatives from the Ministry of Finance and the Government.
"If we don't respect consumers, why are we here? Prices are too high in Montenegro, the region and Europe. They are only organizing a hunt for traders. Attacking your own economy is very dangerous. Whose goal is that?" said Bokan.
Regarding the "limited prices" campaign, he said that it is bad for the government to make decisions without asking and consulting the economy.
"This action covers 1.181 items, of which 125 items have additional customs duties, levies or excise taxes. On those 125 items, state duties account for 43 percent of the retail price, and they limit our margins to five and ten percent. Does that make sense? If they limit our margins, then they should lower taxes and customs duties themselves," said Bokan.
He stated that if merchants were to reduce their margins by four percent, it would reduce inflation by one percent, but would drive all merchants into bankruptcy.
He said that "Voli" is not just a retail chain, but also the largest domestic private food producer with a farm in Šas and a farm in Spuž.
"We had a domestic production project that would reduce meat imports by 76 percent, the government was not interested in that. We had one first meeting where we presented the project, and the second never happened," said Bokan.
He said that he had invested four million euros in the farm on Šas, for vegetable production, but that it was not profitable and that he was close to deciding to close it.
"Imagine if it is not worthwhile for us, who can sell these products in our markets and have a secure market, to engage in agriculture in Montenegro, what it is like for others who do not have these opportunities and depend on someone else for the market of their products," said Bokan.
He again criticized the Prime Minister for calling for a boycott of shops, as well as for stating that "Europe Now" had no impact on inflation and that it had reduced the costs of gross wages for traders.
"We have increased our workers' salaries twice as much as what has been done across Europe now. Who is calling for Lidl to come to Montenegro and why? Who is behind the call for a boycott? I guess we will find out," Bokan said.
Director of the Agency for the Protection of Competition (AZZK) Nebojsa Jovović He said that they had collected data on traders, their margins and prices, and that in accordance with the procedure and findings, they could not conclude that there were agreements to increase prices.
Mirsad Spahić from the Ministry of Agriculture said that Montenegro imported food from 150 countries last year for 985 million euros, and that the gross value of domestic production (for its own needs and sales) is 700 million euros. He presented measures from the agricultural budget that will be worth 77 million euros and called on producers to unite, that is, for the large to gather the small, and for a single association of food producers to be formed.
Vukčević asked three representatives of food importers if they wanted to speak and explain why their margins were higher than those of retail chains, but none of them wanted to speak.
Peace in Ukraine may also bring lower prices in Europe
Owner of "Domestic Store" (Aroma, Conto and City markets) Ljubomir Šćepanović believes that the increase in the prices of imported products had the greatest impact on inflation.
"When the war in Ukraine ends, within six months we will have a completely different market in Europe. Lower prices for energy and raw materials. Large European food producers, from which we import food, will be less greedy, so prices will be lower," said Šćepanović.
He said that a systemic solution is needed. He stated that there are several factors for the price increase, one of which is "the rampant prices in the real estate market."
"Renting space for markets has increased three times compared to a few years ago. There are no workers on the coast, we have to bring them in from other parts of Montenegro. We have to pay for their accommodation, and do you know how much rent is on the coast in the season, food, transportation,... All of these are costs that must be covered by the price," said Šćepanović.
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