Skopje, 14 February 2025 (MIA) – The government yesterday didn’t pass a decision foreseeing 10-percent capping of margins in retail and wholesale trade, which should have been in effect until April 30 covering over 100 groups of products after the Chamber of Commerce of Wholesale and Retail Traders requested an emergency meeting regarding the margin capping decision.

It was expected the draft decision, prepared by the Economy Ministry, to be discussed at a government emergency session. Following price hikes in basic foodstuffs and public boycotts, the government this past Tuesday tasked the Ministry of Economy and Labor with passing a decision on 10-percent capping of retail trade and 10-percent capping of wholesale trade of basic food products in 75 groups of products, covered in past consumer baskets, in addition to hygiene products and baby food. 

The decision was based on a State Market Inspectorate report saying it recorded over 20 percent margin of basic foodstuffs in retail traders and over 30 percent margin of personal hygiene products. Also, it recorded margins as high as 50 percent in importers and distributors. 

Supermarkets say capped margins could cause layoffs

The Chamber of Commerce of Wholesale and Retail Traders of mainly food and non-food products, beverages and tobacco, founded in February, yesterday requested an emergency meeting with the government regarding the margin capping decision. According to the Chamber, if the decision comes into effect, supermarkets will be forced to close and lay off workers, estimated at 4,700.

"We completely challenge the decision to limit margins to 10 percent. We will not be able to survive with this kind of margin. We will have to take restrictive decisions to lay off our employees, restructure operations and close stores. Therefore, we urgently request that a common solution be found. We suggest taking into account the analyses that have shown that markets are not responsible for price increases, but rather that price policy is driven by suppliers and manufacturers," the Chamber said adding that no government has intervened in price formation so far,

Gov’t announced measures too late: opposition leader

SDSM leader Venko Filipche has said the measure to cap margins is proposed too late and announced too early, which allows supermarkets to adapt. Capping of margins, if it remains the only measure, won’t produce any effects, according to him.

Thus, Filipche proposed seven measures, including reducing energy VAT from 18 to 5 percent, reducing VAT of basic foodstuffs, freezing prices of foodstuffs in the next three months, fixing margins of basic foodstuffs, urgent implementation of the law on unfair trade practices, reducing the price of green cards for vehicles and increasing salaries in the private sector by freezing contributions. 

MIA file photo