Bulgarian legislators are preparing extensive changes in price regulation during the euro introduction, which provide for drastic financial sanctions for commercial entities.
According to the new proposals submitted by deputies such as Delyan Dobrev, Yordan Tsonev, and Denitsa Nikolova, traders risk property sanctions between 5000 and 1 million leva for improper price formation in the period from August 2023 to the end of 2026.
The draft law differentiates the sanctioning policy for different categories of traders. For legal entities and sole traders, the following financial penalties are envisaged:
• For the first violation: From 5000 to 100,000 leva
• For repeated violation: From 10,000 to 200,000 leva
For enterprises with an annual turnover of over 50 million leva, additional mechanisms for calculating sanctions have been introduced - up to 0.5% of turnover for the first violation and up to 1% for repeated, with the maximum threshold remaining at 1 million leva.
A significant novelty in the draft law is the obligation for traders with a turnover of over 10 million leva to publish daily until 7 am information on the final selling prices of goods from the consumer basket. This provision has been changed from the initial version, which provided for weekly reporting.
The Consumer Protection Commission will create a public internet portal to track price movements, with the methodology to be specially approved.
Legislators are introducing a new definition of "objective economic factors" that can justify a price change. These include documentable changes in production, delivery, storage, sales costs, regulatory changes, and extraordinary circumstances.
Another significant change is the definition of "essential goods", including bread, milk, eggs, utility services, and medicines. When a sharp increase in the prices of these goods is detected, the Council of Ministers receives powers to take temporary regulatory measures.
Alongside the main texts, alternative proposals have been submitted by various political formations. For example, deputies from "Vazrazhdane" propose a longer period for providing information by traders - no less than 5 working days.
Another proposal, submitted by Sevim Ali from APS, aims to remove the requirement for public announcement of drug product prices, referring to the specifics of pharmacy trade.
The draft law is to be reviewed at second reading by the Budget and Finance Committee, with the deadline for submissions expiring on the day of the discussion.
The final version is expected to provide clear and strict mechanisms for controlling pricing during Bulgaria's most important financial transition - the introduction of the euro.