This year's New Year's table is at least 20% more expensive than last year’s. For example, for a family of four people it will cost about UAH2,000. This opinion was expressed by the UAC Deputy Chairman Denys Marchuk.

"During the year, we observed a trend of rising food prices. It will continue during holidays. In fact, Ukrainians can already see it. For example, traditionally for the winter, one of the main components of the holiday’s dish Russian salad began to rise in price - eggs, which have already risen in price by 10%-15% compared to even the previous month. The cost of chicken has increased by at least a quarter over the year. Vegetables will also become more expensive, as they use a lot of energy resources to store them - gas and electricity. In fact, the sharp increase of energy source prices (gas by 10 times) is the main reason for rising food prices," said Denys Marchuk.

However, it is possible to stop prices’ increase, there are mechanisms for this. One of them is the reduction of the value added tax (VAT) rate on food, as in Europe. Also - restrictions on trade margins on products.

"Nowadays in Ukraine the VAT rate on food is 20% - as well as in industry. Obviously, these are incomparable things and the VAT rate on socially important food products should be lower. In European countries it is 5% -7%. As for the trade margin, the UAC supports the initiative to limit it to 15%, because often in supermarkets such a surcharge to the cost of the product is too large. This set of measures will help reduce food prices and make the consumer basket more accessible for Ukrainians," said Denys Marchuk.

Tuesday, 21 December 2021

 

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