The possibility for the Minister of Energy, Trade and Industry to determine, by decree, a maximum gross profit margin for traders instead of only maximum prices in the sale of products, is given by a bill approved today by the Council of Ministers, which amends the Laws on the Determination of Maximum Wholesale and Retail Prices in Special Cases of 2012 and 2018.
The proposal submitted to the House by the Minister responsible, Ms Natasha Pilidou, expands the scope of the powers of the Minister concerned, in order to prevent unfair profiteering by any party involved in the wholesale and/or retail sale of the products specified in the Act, at times when there are disruptions in global economic conditions and supply chains of specific products or raw materials, as is currently the case with the Russian invasion of Ukraine and the ongoing negative impact of the COVID-19 coronavirus pandemic.
The list of products covered by the Law includes bread, milk, water, Cypriot coffee, barley and corn, and gross profit margin is defined as the profitability ratio, "expressed as a percentage of gross profit on a trader's sales during an accounting period".
Under an amendment to section 4 of the principal Act that members of the House of Representatives will be asked to vote on, the "Minister may issue an order establishing, for a period not to exceed forty-five (45) days, maximum selling prices or a maximum gross profit margin for all or any of the products included in the Schedule to the Schedule, when the amount of the prices , at which these products are marketed in the Republic are at a level which is excessively higher than is justified by international and domestic conditions, and when particularly difficult economic conditions prevail on the market which make it necessary to restrain price increases for essential consumer products, as well as for the protection of consumers, in particular when the profit margin of traders is excessively high.
It is provided that in setting maximum selling prices or maximum gross profit margins, the Minister "shall take into account international and domestic market conditions and in particular:
(a) The import prices of the products, if they are not produced in the Republic;
(b) The cost of purchasing raw materials for the production of the products to be produced in the Republic,
(c) the cost of producing the products if they are produced in the Republic,
(d) the costs of traders,
(e) the profit margins of traders,
(f) the protection of consumers."
Contents of this article including associated images are belongs Cyprus Times
Views & opinions expressed are those of the author and/or Cyprus Times
Source
