bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Friday 24.03.2017 | Name days: Kazimirs, Izidors
LatviaLatvia

LTA concerned over power of dominant traders in Latvia

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU«As dominant traders expand further, so does their procurement power as they try to influence producers more and more, forcing them to work with minimal revenue,» as said by members Association of Latvian Traders.

The organization notes: «Now is the time for the country to understand – small and medium sized traders should be protected. The situation is already tragic – dominant traders have already taken over half of the market. This also increases their procurement power.»

They emphasize that often the sale price in Rimi and Maxima is lower than the price offered by producers to retail traders.

«The prime minister and minister should know that meeting with local businessmen and discussing the problem and possible solutions would benefit the country more than the search for luck in Luxembourg or signing of an agreement with Japan. We believe the government has one last chance to address and resolve local problems,» – LTA representatives comment on the situation.

LTA explains that the major traders pay only 6% of their turnover to the state budget. Small and medium-sized companies pay 11%. By supporting active market division in favour of dominant traders, the government has lost EUR 40 million for the state budget in the past four years.

The Competition Council limited market power for the first time in eight years by setting a prohibition for one of the dominant traders. The majority of 62 retail trade companies located near Domina shopping centre are owned by Rimi. Seven out of ten multi-functional centres in Riga have Rimi in them, LTA notes.

Stanislavs Blankenfelds, head of Latvian Consumer guardianship union, is confident that the right of choice should be retained for the benefit of buyers. It is unacceptable for the country to have only two stores. People should also be more patriotic, he says, and the government should support its own producers and traders.

Blankenfelds notes that those traders are worried about profits and the interests of local residents. «In many other countries local municipalities support local businesses to ensure their earned money is used for development and is not lost. Profits of Rimi and Maxima supermarkets in Latvia have grown in millions lately, especially in recent years. I doubt their owners are interested in investing that money into Latvia’s development. They would much rather transport that money out of the country,» – Blankenfelds comments.

LTA president Henriks Danusevics believes it is highly important to maintain variety in trade. He adds that dominant traders are able to make a good profit even under conditions of a limited market. «It is good that the Competition Council has decided to limit uncontrolled development of dominant networks. This offers a chance to other traders to develop and provides a range of choice for consumers. The area offered by Domina shopping centre could be managed well by other shopping networks, such as Elvi, Elkor, Mego, Prizma, Top, Stockmann or Sky. The same applies to Maxima, which already has a contract signed with Somina Shopping,» – Danusevics says.

LTA council viewed the matter of balanced market development in Latvia in January. «Looking at tax proportion depending on turnover and size of the business, it becomes clear that small and medium businesses pay 5% more than dominant businesses. As the market share owned by dominant business increases and market share owned by retail traders declines, their tax revenue decreases as well. For example, for every EUR 45 million earned by Rimi, the state budget lost a quarter of a million euro, because this market share is taken away from those who pay more taxes from revenue,» – members of LTA say.

Ref: 224.109.109.4912


Leave a reply

Kucinskis hopes to find a new director for State Chancellery within two weeks

Latvian Prime Minister Maris Kucinskis hopes to find a new manager for the State Chancellery within the next two weeks.

InnoEnergy business opens an office in Latvia

International business accelerator company InnoEnergy has opened an office in Latvia. This objective of this company is preparing new and innovative technologies developers for attraction of investments as part of InnoEnergy accelerator.

Bank of Latvia increases inflation outlook for 2017 to 2.7%

The Bank of Latvia has increased its inflation outlook for 2017 from 1.6% to 2.7%, as reported by the bank’s press-service.

CC permits Lithuanian company to acquire decisive influence over Latvian businesses

Latvia’s Competition Council has permitted two mutually associated deals to be performed by W.P.Carey and Kesko, allowing the two concerns to acquire decisive influence over Lithuanian Baltic Retail Properties and three companies registered in Latvia – K Prof, Polo LS and Daugavkrasts M.

Estonian military transport firm co-operates with leading Norwegian and British companies

Estonian military transport manufacturer Milrem has made a joint product with Norwegian weapon-maker Kongsberg and British remote system producer Qinetiq North America.

Welfare Ministry opposes diverting part of social budget to healthcare

Experts view Finance Ministry’s proposal to divert certain parts of the social budget to pay for certain healthcare services. Welfare Ministry is especially cautious about this proposal.

Saeima agrees to publish names of disciplinary punished judges

Publication of information about disciplinary penalties applied to judges, their names and surnames will no longer be prohibited, as stated by amendments to the Judicial Disciplinary Liability Law supported by the Saeima in the first reading on Thursday, 23 March.

Experts: internet users open up 30% of fraudulent e-mail letters

Cyber criminals are becoming more and more cunning and their fraudulent e-mails – harder and harder to differentiate from real ones. Internet users open up to 30% of fraudulent e-mail letters, explains eScan antivirus developers.

Minister: Latvia supports International Coalition’s fight against Daesh

«The fight of the International Coalition against Daesh has become a very effective instrument to help reduce Daesh military, financial and recruitment capabilities,» said Latvian Foreign Affairs Minister Edgars Rinkevics.

New pulp factory planned in Estonia

Estonian entrepreneurs have envisaged building a high-tech pulp-making plant near the city of Tartu and have submitted the plan for confirmation from Estonian national special planning authorities.

Ventspils Freeport Authority announces procurement

Procurement has been announced for the construction of an access road in Ventspils, Talsu Street 200 and landscaping of nearby territories so that one of the land tenants can commence construction of their building there, as reported by Ventspils Freeport.

Estonian investors consider construction of pulp factory in Latvia

Investors that consider building a pulp factory worth EUR 1 billion in Estonia’s southern region allow for the possibility of getting permission for the same project in Latvia, because this process can take a long time in Estonia.

Russian singer barred from going to Eurovision in Kyiv

Ukrainian authorities have banned Russian Eurovision representative from entering Ukraine, where the pop song contest Eurovision is to be held in May.

Travel passports planned to be introduced in Latvia

Deputies have submitted amendments to the Personal Identification Documents Law, suggesting the adoption of travel passports to avoid situations when people are denied the right to travel freely or participate in elections.

Tragic attack in London

In a tragic attack on civilians and police in London, five people have been killed and no less than 40 injured.

Farmers urge voting in favour of preserving land in the hands of local residents

A letter with a request to support farmers, countryside residents and amendments to the Law on Land Privatisation in Rural Areas has been sent to members of the Saeima.

Officials support Finance Ministry’s proposals for medium-term tax strategy

At the 22 March meeting of the National Economy Council, members of the parliament decided to conceptually support Finance Ministry’s proposals for medium-term tax strategy.

Ameriks received nearly 200,000 euros from fast loan companies in interest pay

Vice-Mayor of Riga Andris Ameriks received income of nearly 200,000 euros in interest pay from fast loan companies 4finance and Mogo last year, according to the declaration for 2016 submitted to the State Revenue Service.

Estonia to reduce availability of plastic bags in shops

Having passed amendments to the Estonian «Packaging Law», the Riigikogu has adopted a plan to reduce the use of plastic bags in the Baltic country over the coming years.

Latvian businesses in Japan to be provided with stable tax payment regime

Latvia businesses working in Japan will be provided with a stable tax payment regime that will not be influenced by amendments to Japan’s tax regulations, as stated in Saeima’s report.

Multiple parties to gather in a single candidate list to compete with Lembergs

Latvian Association of Regions, National Alliance, For Latvia’s Development and Unity will start at municipal elections in Ventspils under a single candidate list, said the leader of this unified list Girts Valdis Kristovskis in an interview to Latvijas Avīze.

Reirs: ministry’s offered tax reform will change nothing for most pensioners

Finance Ministry’s offered tax reform will add only slight changes. Most pensioners will not feel any changes from this reform – neither good, nor bad, said Welfare Minister Janis Reirs in an interview to Rīta panorama.

Canadian ambassador: Latvia and Canada are closer than ever before thanks to CETA

«All Latvian exporting companies – those that already export goods to Canada and those that consider doing that – will benefit from the Comprehensive Economic and Trade Agreement,» says Foreign Affairs Ministry’s parliamentary secretary Zanda Kalnina-Lukasevica.

Expert: cargo transports through Iran offer a major step for international logistics market

Over the course of nine months, since Latvian logistics company Pro Logistic Services opened an office in Iran, the volume of cargoes and the number of serviced clients has grown by 15%.

Eastern Hospital’s Gynaecology Clinic to be provided with 500,000 euros to reduce queues

Riga Eastern Clinical University Hospital’s Gynaecology Clinic will be provided with funding of EUR 513,622 from the state budget to help reduce queues.