bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 16.07.2018 | Name days: Hermīne, Estere
LatviaLatvia

Traders: another experiment fated to fail is planned by the government

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUOn Tuesday, 16 February, Saeima’s Public Health Sub-Committee views a draft on tobacco products. In it, Saeima deputies unexpectedly included a proposal to change the order for trade of tobacco products. This proposal details an order for traders to invest in new trade equipment – special metal shelves for storage of cigarettes.

Support for this proposal would provide even more retail trade market share to dominating trade networks in the country (Rimi, Maxima, Narvesen), because smaller traders have no financial ability to afford new investments after the previous and upcoming manufacturing cost increase (minimum wage increase of EUR 50 per employee and procurement of new cash registers), notes President of Latvian Traders Association Henriks Danusevics.

The idea for this change was offered by Healthcare Ministry last year. Fortunately, it was declined shortly after its announcement. Finance Ministry, State Revenue Service, Economy Ministry and retail traders all opposed this proposal. Moving cigarettes from stands to ‘under the counter’ would basically equate them to contraband and only serve to increase cigarette contraband in general. Losses in the form of unpaid taxes already reach EUR 80 million a year. This proposal would also reduce competition in retail trade – many small and medium-sized shops would likely drop their cigarette trade licenses, which would result in customers going to supermarkets and small businesses going bankrupt, explains Danusevics.

There are currently 4,204 trade locations in Latvia. 279 of them are supermarkets. Adapting a store to new requirements would cost EUR 700 – EUR 1,000. For 43% of stores around Latvia, cigarette trade does not bring even EUR 700 a year – more than 90% of the price of a single cigarette pack is made up of excise tax and VAT. Estimates show that adding the aforementioned changes would cost Latvian supermarkets around EUR 3 million, notes Danusevics.

«Experience of other countries shows that it is nothing more than yet another experiment pre-destined to fail. A similar proposal was viewed in Brussels two years ago. It was declined by the European Parliament and the European Council. Restrictions on product positioning in one of the four countries that has it (Finland, Ireland, Norway and Iceland) has failed to reduce the popularity of smoking. For example, the popularity of smoking among youngsters 15 to 19 years old has only increased (from 14.4% to 17.5%) after the introduction of such a restriction. Even outside of Europe, in Canada, the product placement restriction has only increased smoking among youngsters by 2%. In addition, it has also contributed to growth of contraband – the illegal market in Canada had growth from 4% to 23% over the course between 2005 and 2007,» – explains the president of the traders association.

«Local Latvian traders are already on the brink of extinction. This proposal and the way it was added to the law – five minutes prior to approval in the Saeima – makes one wonder about a possible conspiracy against local Latvian traders and preferential treatment to dominating traders,» – says Danusevics. «If the Saeima approves this new order, the government should offer compensations to retail traders. Considering the significant risk of increase of illegal trade, we believe this decision will be cast aside as ineffective in the future. Businessmen no longer wish to finance experiments.»

Ref: 102.109.109.6526


Leave a reply

Rezekne Council deputies will not be penalized for releasing newspaper in Russian language

The court has lifted fines previously applied by Corruption Prevention and Combating Bureau on nine deputies of Rezekne City Council for releasing a newspaper produced by the council in Russian language in addition to Latvian.

Volume of imported petrol in Latvia down 2% in five months

The volume of motor fuel imported to Latvia in the first five months has declined 2% in comparison with the same period of 2017. The volume of diesel fuel has declined 14.9%.

Corruption watchdog ends case about Bi-2 concert in Riga

Corruption Prevention and Combating Bureau ended in May the case regarding possible misuse of administrative resources on pre-election promotion by Riga City Council in the form of a free Bi-2 concert in Lucavsala.

Thailand's rescued boys honour casualty of 17-day rescue operation

In Thailand, a 12 boys trapped in a cave have been rescued in a rescue operation that lasted for 17 days and ended with one casualty, a rescue diver.

Latvian political party Progresīvie to nominate women as candidate list leaders

Latvia political party Progresīvie has revealed its list of candidates for 13th Saeima elections. Five women have been stated as leaders of candidate lists.

Estonia earns 150 000 euros from military evaders annually

Estonian compulsory military service is evaded by about 1 000 young men each year, who have to pay fines that annually exceed the combined total of 150 000 euros.

Chairman: FCMC’s competence should end with termination of licenses if banks are liquidated

In the event of liquidation or insolvency, Finance and Capital Market Commission’s competence should end with revoking affected banks’ license and without the need to appoint an administrator, says FCMC chairman Pēters Putniņš.

Minister: Latvia may terminate MPC system in the next three years

In the next three years or so Latvia could completely terminate the mandatory procurement component system, said Economy Minister Arvils Ašeradens in an interview to Rīta Panorāma programme of LTV.

In pictures: French victory in World Cup celebrated by tens of thousands in Paris

After the football World Cup was won by the French national team on Sunday, an enormous crowd of people gathered in central Paris to celebrate.

Another case of African swine fever infection recorded for domestic pigs in Latvia

African swine fever infection was recorded for domestic pigs in Tērvete on Monday, 16 July. 16 pigs were liquidated because of the infection, as reported by Food and Veterinary Service.

MEP Artis Pabriks becomes political party «Attīstībai/Par!» prime minister candidate

Latvian political party «Attīstībai/Par!» has picked Daniels Pavļuts, Juris Pūce, Ilze Viņķele, Artis Pabriks and Mārtiņš Bondars as its regional candidate list leaders. Artis Pabriks will also be the party’s prime minister candidate.

Russian-U.S. presidents meet in Helsinki

U.S. President Donald Trump and Russian President Vladimir Putin are meeting on Monday in Helsinki.

Heat of up to +30° C expected in Latvia this week

Weather in Latvia will be warm and even hot at times this week, as air temperature reaches up to +30° C. At night, air temperature is not expected to go below +20° C. Many regions will likely experience thunderstorms closer to the middle of the week, Environment, Geology and Meteorology Centre reports.

Week in Lithuania. Lithuania's Tripartite Council fails to reach agreement

Lithuania's Tripartite Council on Tuesday, July 10, failed to reach agreement on raising the minimum wage. Employers are inclined to back the government's proposal to raise the minimum pay to 420 euros. Meanwhile, trade unions want it increased to 450 euros.

BNN summary of the week: NATO to increase and ABLV Bank loses its license

BNN offers a summary of this week’s topical news in a variety of categories: Future; Deal; Fight; Decline; Decision; Opinion.

SEB Bank to unite life insurance companies working in Baltic States

SEB Bank will unite life insurance companies working in Baltic States, BNN was told by SEB Bank’s representative Agnese Strazda.

Saeima deputy Askolds Kļaviņš becomes suspect in criminal case

Saeima deputy from the Union of Greens and Farmers Askolds Kļaviņš has been made a suspect in the criminal case regarding abuse of official power.

Minister: E-health system has stabilized, but improvements are still needed

Functionality of the E-health portal has stabilized. Disconnection errors have ceased. Nevertheless, we have to continue improving the system further, said Latvian Healthcare Minister Anda Čakša said in an interview to Rīta panorama programme of LTV.

Six to eight Finance and Capital Market Commission officials may work at ABLV Bank

Six to eight FCMC trusties may work at the liquidated ABLV Bank, says Finance and Capital Market Commission chairman Pēters Putniņš.

Latvia’s Cabinet of Ministers receives expanded draft on deposit system

Environment Protection and Regional Development Ministry has submitted to the Cabinet of Ministers an expanded legislative draft regarding amendments to the Packaging Law and Environment Protection Law for their review in the State Chancellery, as confirmed by the ministry’s representatives.

Latvia will not escape talks on increasing defence spending

It is necessary to develop Latvia’s defensive capabilities. Because of that, Latvia cannot escape talks on increasing defence spending to more than 2% of GDP, said Defence Minister Raimonds Bergmanis, who is participating in the NATO summit in Brussels.

Russia extends food product embargo until end of next year

On Thursday, 12 July, Russian President Vladimir Putin decided to extend the embargo on food product imports from countries of the European Union and other countries until the end of next year.

Heat in Latvia to remain for longer; thunderstorms and heavy rain expected, as well

Next week in Latvia will be appropriately hot for summer, as air temperature is expected to reach +30° C at times. Nevertheless, most of Latvia will experience rain and thunderstorms, as reported by State Environment, Geology and Meteorology Centre.

US President announces «tremendous amount of progress» in defence spending matter

On Thursday, 12 July, US President Donald Trump announced having achieved a great deal of progress in the NATO member states’ defence spending matter during the summit.

Providus: it is impossible for Latvian parties to attract large funding honestly

«If we look at political parties’ ability to attract funding from large companies, for example, conclusions are rather sad – there is no way for parties in Latvia to attract funding in an honest way,» Providus think tank researcher Iveta Kažoka said in an interview to BNN.

Newest comments