Bread and meat may become cheaper in Russia

The Ministry of Industry and Trade will consider the initiative of the Association of Retail Companies (AKORT, unites large retail chains) to reduce VAT on socially significant products, in particular, meat, milk, bread, tea, bananas. The ministry is confident that the initiative “deserves attention.” This was reported to Izvestia in the press service of the department.

At the end of June, AKORT suggested that the Federal Tax Service give sellers a number of indulgences in their work: this will allow chains to continue to contain rising food prices. Food inflation is rapidly increasing, for example, in early April it amounted to almost 20% in annual terms, retailers pointed out.

Plus, the network was offered to give them a deferral of a year to pay insurance premiums and taxes. In theory, such concessions will allow the retailer to free up resources in order to keep prices low for essential products and their wide range longer.

“In general, the Ministry of Industry and Trade is in favor of market methods to contain prices. For example, we recommended that market participants (retail chains and suppliers) move from the practice of procurement at tenders to direct long-term supply contracts, ”the press service of the ministry specified.

Moreover, tenders should be an additional tool for the rapid replenishment of inventories during periods when consumer demand for these goods rises sharply, they say.

The department stressed that the ministry’s specialists monitor the situation with regard to prices and supplies on an ongoing basis, plus they hold meetings with associations of manufacturers, retail chains and regional authorities that oversee trade.

The Ministry of Industry and Trade added: according to AKORT, this year the largest retail chains voluntarily reduced the margin on socially important goods three times from 22 to 7%. In some cases – up to 5%, although this does not even cover the operating costs of the retailer. In some cases, companies charge a negative premium. To support the industry, reduce the financial burden on networks and continue to keep low prices on a long-term basis, ACORT has proposed several support measures.

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