Belarusian Ministry of Economy issued Decree № 196 of December 30, 2010, thus introducing amendments and additions to the instructions on the procedure of formation and application of prices and tariffs, approved by Decree № 183 of Ministry of Economy on September 10, 2008. The document, published on January 20, deregulated prices on import and wholesale allowances, as well as made some other changes, affecting the pricing process in the country.
The adopted amendments affect both importers and wholesale organizations. Thus, changes were made in paragraph 4 of the instructions which stated: «The subjects of entrepreneurial activity set prices (tariffs) for goods (works, services) in the national currency, unless otherwise is provided by law.»
Edition of paragraph 10 of instruction 183 was also completely redesigned (old edition touched upon the formation of prices of agricultural products, purchased from businesses and individuals).
Now, this item is: «The subjects of entrepreneurial activity, purchasing agricultural products from agricultural organizations and individuals, form the selling prices to supply products to processing and trade organizations, based on the purchase price, the planned expenditure on procurement, storage and transportation of agricultural production, taxes and nontax payments, as well as profits.»
Significant changes affected paragraph 12 of the instruction, concerning the activities of organizations-importers. To date, organization-importers resort to wholesale allowances for price formation in the amount not exceeding 30% for the items, listed in Appendix 1 of instructions 183 (social-purpose goods, foodstuffs).
Restrictions on the size of the wholesale allowances (20%), charged by commercial organizations, engaged in a wholesale trade, were also abolished with the exception for the list of goods, listed in Annex 1 (paragraphs 21 and 22 of the instruction).
However, the above limitations are counted in the formation of sale and retail prices of the major socially significant goods on the list, according to Annex 1 of the instruction.
Discounts Mechanism from Wholesale Prices is Simplified
In addition, the amendments simplify the discounts mechanism from wholesale prices (tariffs), as well as the dividing bulk reductions (changes in paragraphs 18, 19 and 37 of the instruction). In particular, the mandatory requirement for the establishment of the discounts fixed sizes and specific conditions for their granting, were repealed. This allows business entities to respond more quickly to changing market conditions and to use flexibly the discount-granting instrument in the competitive-developed environment.
The decree also made changes to certain items of the instruction in order to bring the provisions of instruction in accordance with the applicable law.
So, rough cost estimate for calculating sales prices (tariffs) and the approximate cost estimate for calculating the tariffs for population, legal entities and individual entrepreneurs in the sphere of consumer services were amended in Annex 2 of the instruction in order to conform with current tax laws in connection with the fee cancellation to the national fund for support of agricultural products, foodstuffs and agrarian science.
This decision comes into force on February 1, 2011 after its official publication. Resolution of the Ministry of Economy was published in the newspaper «Respublika» № 11 dated January 20, 2011.
