On the 19th day since the introduction of the euro in Bulgaria, the National Revenue Agency reports serious, but still limited in terms of share, violations in pricing. This was stated by the Director of Communications at the NRA Anna Mitova in the studio of “Hello, Bulgaria“, where she presented a summary of the inspections and the most drastic cases to date.
The most striking example found in the latest NRA report is from a hair salon in Burgas. There, the price of hair dye was increased by 291%, Mitova said. According to her, although the exact old price was not announced, the calculations show a significant increase.
Anna Mitova emphasized that the law clearly defines the permissible economic factors for price increases. “They are fixed in the Law on the Introduction of the Euro – these are an increase in the minimum wage, an increase in the prices of electricity, water, stock exchange prices and fuels“, she explained.
According to the NRA, personal decisions to sharply increase wages cannot automatically justify a price increase. “When we are talking about an increase of nearly 300%, there is obviously no way that an increase in the minimum wage by a much smaller percentage can be sufficient grounds“, said Mitova.
The NRA is categorical that in a market economy, institutions cannot oblige traders to reduce their prices. “The state cannot intervene in pricing and oblige a trader to operate at a certain price”, said Mitova. However, she specified that incorrect behavior is subject to sanctions. The initial fines that the NRA imposes are minimal - around 2,600 euros, when it comes to a first violation. “We do not want to repress business”, Mitova is categorical.
In the event of continued incorrect behavior, the Consumer Protection Commission is also involved. “It can issue regulations, and if they are not implemented, the sanctions can reach 102 thousand euros“, specified the director of “Communications“ at the NRA.
The inspections also cover municipal and state entities. “We apply the law equally – regardless of whether it is a private company, municipal or state institution“, said Mitova.
She reported on acts issued against municipal companies, including for inflated prices for graves and hall rentals. “We have four acts against such institutions and one already issued penal decree for about 2600 euros“, she indicated.
Over 3100 inspections, under 10% violations
According to NRA data, over 3100 inspections have been carried out so far. “We have 177 acts, which means that violations are less than 10% of all inspections“, reported Mitova. The issued penalty orders are currently 48 worth about 125 thousand euros, and the amount is expected to increase to 350 thousand euros in the coming days.
Most violations were found in food products. “About 87% of the acts are for increasing food prices“, said Mitova.
There are also sanctions for restaurants and bars, beauty salons, gyms, parking lots, car washes and pharmacies. “We have 12 acts for restaurants and bars, 14 for parking lots, 20 for gyms and 14 for beauty salons“, she listed.
The inspections often begin with a signal from citizens and include the so-called “mystery shopper“. “The fiscal control colleagues enter unbranded, make a control purchase and use the cash receipt as evidence“, explained Mitova.
After that, the merchant has a five-day period to present a justification for the increase.
Anna Mitova also emphasized the importance of consumer choice. “In addition to the institutions that are corrective, there is also the choice of the consumer. "If a service has gone up in price by 300% and there is no objective reason, people can simply replace it with another," she said.
According to her, it is the combination of control, sanctions and informed choice that is the key to limiting speculative price increases in the transition period to the euro.