Mandatory 5% Markup on Tobacco Products May Be Abolished: Proposed Changes
Small shops and kiosks selling tobacco products claim that the state-established minimum trade mark-up does not allow them to make sufficient profit. According to entrepreneurs, a significant portion of revenue goes to cover mandatory expenses, so they propose giving businesses more freedom in setting retail prices.
The Cabinet is asked to review pricing rules
A petition (No. 41/010330-26ep) has been submitted to the Cabinet calling for the cancellation of the mandatory minimum trade mark-up of 5% on tobacco products.
The author of the appeal asks the government to make appropriate changes to regulatory legal acts and grant business entities the right to independently determine the retail price of tobacco products within the framework of current legislation.
Why the rules are proposed to be changed
The petition states that for many small business representatives, selling tobacco products does not bring significant profit.
According to the author, the funds received are mainly directed to paying for the licence to retail tobacco products, taxes, rent, employee salaries, and other mandatory expenses.
As a result, the appeal claims, many entrepreneurs actually do not make a profit or even operate at a loss.
What changes are proposed
The petition author believes that the ability to independently set retail prices will promote the development of small businesses, increase competition, and allow entrepreneurs to conduct business more effectively without violating tax and licensing legislation requirements.
In this regard, the Cabinet is asked to consider the possibility of cancelling the mandatory minimum trade mark-up of 5% on tobacco products and support the relevant changes.
Subscribe to our Telegram channel t.me/sudua, follow SUD.UA on Google News , and join us on VIBER, WhatsApp, Facebook and on Instagram to stay informed about the important events.
