Price Announcement After VAT Discount from Markets

Last week, President Recep Tayyip Erdoğan increased the VAT rate applied to basic food products from 8 percent. to 1 percent The leading chain markets of the sector reported that they started to apply discounts on their products in line with this statement. After his visit to the United Arab Emirates today, President Erdoğan spoke once again on the subject, and in addition to the discount applied to VAT, there are also supermarkets. extra 7 percent He said they wanted a discount.

After these statements, all eyes turned to the markets. Despite the fact that the sector representatives, who made statements on the subject, applied the VAT discounts to the products they sold, this time the manufacturers from whom they bought the products also applied. interest did; for this reason too sales at a loss recorded what they did.

Markets that make sales at a loss complain about the situation

Industry representatives stated that they are now selling their products at a discount upon President Erdogan’s call for discounts, but now the manufacturers have increased the costs of the products. complainant it happened. Erdal Tüfekçi, Member of the Board of Directors of Onur Markets, stated that they made an immediate discount on the products on the shelves with the VAT discount, and used the following statements in his statement:

Markets have already applied the VAT discount as soon as the announcement is made. We are also sensitive about the consumer’s consumption of affordable food, and we make discounts from time to time. However, some products raised is coming. We also put the products that come from the manufacturer with a price increase on the shelves. In this regard, the markets unfair they are going on the ground. We also get a raise from the manufacturer. To give an example, a producer-based raise came to eggs last week. Therefore, the difference in discount closed it happened.

Regarding the producer’s complaint that the price hikes are not fully reflected, Tüfekçi“For example, there is talk that sugar factories will raise sugar prices in the coming weeks. We have made a 7 percent VAT discount on sugar, but if the product comes to us with a price increase, the difference is again. closed it will be. Even if there is a hike in some food products, we are on limited margins. interest we are doing. Sometimes we even sell at a loss below our own cost.” recorded as.

“Products from the manufacturer must come at a discount”

A big one on the market oppression Hakan Baran, General Manager of Altun Market, stated that the “There are many products that we buy at a discount when buying wholesale. The hike in these products minimum We try to reflect on the level. There has been a pressure and prejudice on us since the beginning of the pandemic. We are already adding our products to the shelves by postponing the hikes. I can say that we sell almost 10 percent of the products at a loss. Substantially products from the manufacturer It has to come at a discount.” used the phrases.

Reşat Narman, General Manager of Mopaş, stated that they immediately reflected the VAT discount on the shelves regarding the issue. “However, apart from this VAT reduction, there is an additional increase in many products. We already reflect these hikes as optional. not to reflect we are working. There are also products that we sell below our costs, there is pressure on the markets in this regard, but we sometimes have to reflect the product that comes with a price increase from the manufacturer.” conveyed in the form.