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The government is in dialogue with key groups of manufacturers and retailers in Ukraine on a proposal that should balance prices, Prime Minister Denis Shmyhal said.
Food prices in Ukraine are rising due to attempts collusion and monopolistic manipulation, he said Prime Minister Denis Shmygal at a government meeting on March 10, reports the newspaper’s correspondent. “GORDON”.
The acceleration of inflation is explained by objective factors, but there are also attempts at collusion and monopolistic manipulation in the market, Shmygal said, commenting on the data from the State Statistics Service on the acceleration of inflation.
“Prices on the rise [на продукты] It occurs due to objective factors, but we also record attempts at collusion and monopolistic manipulation. We are now in dialogue with key groups of manufacturers and retail chains. We are talking about an increase in supply, which should balance the prices, “Shmygal said.
He added that the government assesses food prices every day, particularly where prices are rising the most. A decrease in VAT for farmers to 14% will not affect food prices in any way, Novak said.
“The reduction of the VAT to 14% was produced in the interest of certain agricultural exploitations, and not of all the agricultural producers”, assured the economist.
On February 23, the President of Ukraine, Volodymyr Zelenskyy, signed Law No. 1115-IX, approved on December 17 of last year, which reduces VAT from 20% to 14% on cattle, pigs, milk, sugar beet, wheat, rye, barley, oats, corn, soybeans, beans, flax seeds, rapeseed and sunflower seeds. As the analysts pointed out, the law “is capable of stopping the” turn “and returning agricultural production to the legal field.”
Deputy Finance Minister Svetlana Vorobei said that after the reduction of VAT to 14%, the amount of the budget VAT refund will be reduced by 13 billion UAH per year.
The inflation report of the National Bank of Ukraine reported that in 2021 the Ukrainian economy will offset the losses caused by the coronavirus pandemic. In the first half of 2021, the National Bank forecasts a rebound in inflation, at the end of the year it will be 7%. The reason for this is poor harvests in 2020, higher prices for energy resources and higher growth in consumer demand. An additional factor will be the increase in the minimum wage (20% in January, another 8.3% in December). The National Bank expects that in 2022–2023 inflation in Ukraine will decrease and consolidate at the level of 5%.
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