Ongoing Talks with Retailers on Profit Margin Caps
The National Economy Ministry announced on Friday that it is working closely with retailers affected by the implementation of the profit margin cap. This measure will cap supermarkets’ profit margins at 10 percent for certain goods and is set to be enforced starting Monday.
The ministry confirmed that it is addressing all queries, including those from the retailers’ association OKSZ. So far, the association has only inquired about the clarification of the proportion of private label products. In response to these inquiries, a professional guide will be published to assist all parties in the consistent enforcement of the law.
According to the ministry, the margin cap could lead to an average price reduction of over 10 percent for the thirty product categories impacted. This move aims to make prices more transparent and competitive in the market.
In related news, Prime Minister Orbán has suggested that the government may extend the profit margin cap to all food items, indicating a broader effort to regulate prices in the retail sector.
Overall, these developments signify the government’s commitment to ensuring fair pricing practices and protecting consumers from price manipulation by large retailers. Stay tuned for further updates on this matter.
