The State Duma pressed retailers
The State Duma adopted a bill limiting the terms of payment for retail chains for supplied products. This, according to legislators, will help Russian agricultural producers.
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“The level of accessibility to sales of domestic products largely depends on the activities of retail chains. The cooperation of so-called “retailers” with national and local manufacturers both contributes to an increase in consumer sentiment and acts as a catalyst for one of the most important segments of domestic economic policy.
In order to counteract essentially interest-free lending to retail chains to the detriment of the interests of manufacturers, the bill proposes to reduce the deferred payment terms for goods received from the supplier,” says the explanatory note to the bill.
“We are seriously reducing payment terms for delivered products; we are actually reducing the turnover premium, which has become a tax in favor of retail chains,” Irina Yarovaya, one of the bill’s initiators, said at a State Duma meeting. – Just think about it, the 10 percent that was allowed, from 0 to 10, turned into a constant 10 percent as an effective tax in favor of the retail chain. Of course, this is unacceptable practice. In fact, payment deadlines, which were uncontrollable, because the payment deadline began after the documents were submitted, and these deadlines were always delayed, this is interest-free lending, although we understand perfectly well that today the most expensive credit resource is.
Therefore, protecting our villagers, our agricultural producers, our domestic food producers, we allow this money, which they spent on levies and bonuses, to be used to develop their production, to produce the highest quality products. Because what do additional costs affect? Of course they affect the price. Of course, they affect the quality of food products.”
The bill also introduces a limit on the total amount of all payments by a food supplier to trade enterprises (including both fees for purchasing goods and fees for promoting goods). This will make it possible to create a mechanism that, on the one hand, does not prevent retail chains from providing services to stimulate consumer demand for food products sold, and on the other hand, prevents possible abuses.
The bill provides that when calculating the total volume of payments in favor of business entities engaged in trading activities, the “net” price of purchased food products is used (excluding indirect taxes). Such a requirement will not allow artificially increasing the amount of remuneration for networks, incl. selectively, which will contribute to the development of competition and protection of the interests of suppliers.
At the same time, a reduced amount of total remuneration for retail chains is established in the amount of 3% of the “net” purchase price of food products, which will help reduce the rise in consumer prices for food products and protect the interests of Russian producers.
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