The Government of the Federation of Bosnia and Herzegovina has, at the proposal of the Federal Ministry of Trade, adopted a decision by which, as a measure of direct control of prices in the territory of the FBiH, it prescribes the determination of the maximum amount of margins in trade (calculative prices) for certain basic foodstuffs and some other products.
In the following, we will focus more on this obligation and where it is applied.
The Federation of Bosnia and Herzegovina has determined the maximum margins for certain basic foodstuffs.
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Federation of Bosnia and Herzegovina
Author: Kristina Dosen
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Fiscal subject related
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483
Content accuracy validation date:
28.09.2023
Content accuracy validation time:
10:20h
It is reasoned that the decision was made in accordance with the Price Control Act, with the aim of protecting the living standards of citizens. When determining the amount of margins in wholesale and retail, it was taken into account that the margin of traders can cover the costs of doing business and ensure their continuity of business, as well as that it does not serve to make extra profits for traders.
According to the decision, the measures of direct price control refer to products under the jurisdiction of the FBiH, canton, city, and municipality, as prescribed by the provisions of the Law on Price Control, as well as to other foodstuffs and other products sold by all participants in the supply chain, i.e., companies and other legal and natural persons that produce and perform wholesale and retail trade.
These legal entities and natural persons are obliged to determine and apply margins so that those in wholesale and retail do not exceed the maximum amount of margins in the percentage amount of the purchase price.
This obligation, according to the decision mentioned, applies to the following:
- wheat flour type 550 (per kilogram is prescribed wholesale margin five percent, retail seven percent),
- then all types of bread made of wheat flour (whole or sliced) per kilogram (wholesale margin five percent, retail seven percent),
- cow's milk, pasteurized, homogenized, and sterile per liter (wholesale margin three percent, retail six percent),
- as well as edible sunflower oil per liter (wholesale margin: five percent, retail: six percent).
- There is also sugar crystal white per kilogram (wholesale margin: four percent, retail: eight percent).
- fresh consumer eggs, per piece (wholesale margin: five percent, retail: six percent),
- as well as all kinds of fresh meat (wholesale margin: five percent, retail: six percent),
- and laundry detergent powder per kilogram and dishes liquid per liter (wholesale margin eight percent, retail 12 percent).
Currently, among the same entities, there is no specified timeframe for how long the measure will last, but it was made in accordance with the Law on Price Control, which regulates the conditions and procedures for introducing direct price control measures in cases of market disturbances or emergencies. Therefore, it is possible that the measure will be in effect until the market situation stabilizes or the emergency situation ends. However, this is only a speculation, and it would be advisable to consult with the Federal Ministry of Trade or the Government of the FBiH for more details on this issue.
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