What can the state do to protect consumers from price hikes

Representatives of the business community and economists say the Kosovo government should impose measures to protect citizens from increasing prices of food products and fuels in the local market. Once, according to them, the government should increase the commitment to market monitoring.

As in other countries, prices in Kosovo are undergoing constant change as a result of the global crisis due to the conflict in Ukraine and the ban on exports of basic products from several countries in the region.

For the price hikes and the situation created in the market, especially last week, the Kosovo Assembly will hold extraordinary sessions on March 15th. The hearing was called by opposition parties.

Last week in Kosovo, there has been an increase in the price of oil derivatives, oil, flour, milk and services products, bus and taxi tickets.

Remove T V S. and excise either set price ceiling

Lumije Aydini from the Kosovo Business Alliance says increasing the prices of goods and services is inevitable on the Kosovo market, due to import dependence.

The sale of the State Value Tax (TVSH) and excise in primary products, according to her, are some of the options that can be used in this case.

TV The US is a tax charged to the consumer in goods and services.

The VAT law stipulates two tax rates: standard rate 18 percent, as well as reduced 8 percent.

In order for the citizen to cope with the uncontrolled price situation, the government needs a short period of time, remove the VAT for cereal products, milk oil and products. Or even subsidies to the manufacturing industry for basic products”, she tells Radio Free Europe.

But against the removal of excise and VAT on elementary products, Albulen Kastati, professor of economics at the AAB College, says. She says these measures could have eventual effects on the state budget.

To keep the prices of goods and services under control, it considers the price ceiling should be placed, but in certain cases the products should be subsidised. These policies are used for a short time.

The price ceiling means that the price charged on the market does not exceed a certain value.

“needs to be taken into account, as the moment being told to a private retailer, for example, the price of oil cannot be over 1.49 cents, while it is supplied at 1.50 euros, this could bring other negative effects on the market. This may also result in a lack of products, a drop in quality, or an illegal market. Usually, if Government sets ceiling prices, it is good to subsidize the rest of the basic products”, she says.

To preserve the possibility of market disorders, the Kosovo government has imposed trade margins (the maximum price) only for oil derivatives. According to this decision, the highest trading margin should be up to 4 percent of the sale price, while among retail vendors the highest margin to 6 percent.

While on 9 March, the government has made the decision that farmers and farmers will be subsidised for oil worth about 5m euros. The subvention will be made at the value of about 0.36 cents per litre of oil, estimated by the owned hectares of the hard land.

Another important factor in the situation, according to Albulen Kastratit and Lumniye Aydin, is controlling the market by the Market Inspectorate and the Kosovar Competition Authority.

Any business or business that misuses the situation for personal gain, they say, should be punished.

Since 9 June last year, the Kosovo Competition Authority has been dysfunctional because the chairman, deputy chairman and three members of this commission have expired for five years.

The government, on 9 March, has proposed to the Kosovo Assembly the new composition of this commission.

Albulen Kastrati says the functioning of the Kosovo Competition Authority is an emergency need. While the inspector shares should be standard of general life and “not activism only in times of crisis”.

Ministers of Undertaking, Industry and Trade have not provided any answers to Radio Free Europe, whether they are considering opportunities for setting price measures, as the countries of the region have done. Minister Roseta Hajdari did not deny that this issue could be considered in the future.

As for the possibility of reducing excise ) which is a tax that applies on excise products, such as energy, tobacco or alcohol, and VAT, Kosovo Minister of Industry, Trade and Trade Roseta Hajdari, last week did not deny that this issue could be considered in the future.

Measures in Region States

Some of the countries in the region have already imposed different price measures as a result of the global crisis.

On 12 March, the Government of Albania, with normative action, has decided to monitor the price of selling oil by products to consumers. According to this act, the price of oil and gasoline from 12 March to 15 March will cost 217 (1.79 euros), cash, while the price of gas will be 93m euros (0.76 euros).

And on Sunday, March 13th, the government has introduced the “Social Parke”. According to this, the government has earmarked between three thousand and a month for pensions for three months. It has removed the tax on wages of up to 400 thousand dollars (325 euros). This tax was 13 percent, as well as farmers, will buy unfathomable oil.

The move to cope with the economic crisis has also approved the Northern Macedonia Assembly.

On March 12th, the Law to reduce excise fuels for their sale has been passed, as well as the Law on Reduced Price (TVSH) on fuels, from 18 to 10 percent. T The VV has been removed for basics.

Northern Macedonia has banned the export of certain food goods for ten days. The decision includes export of wheat, barley, corn, flour, sunflower seeds, as well as oils.

The government of Serbia has made similar decisions. This country has suspended exports of wheat, flour, corn and oil from March 10th.

Meanwhile, to preserve the living standards of the population, the Serbian government has limited the price of oil derivatives by April 11th. By this time, a litre of oil will cost 1.50 euros.

Serbia will hold presidential and parliamentary elections on April 3rd.