Fight for customers - Increasing number of retail chains announce they will not increase prices as of January 1 despite VAT increase

Although it was announced that the prices of bread, milk, meat and other provisions would go up as of January 1, it seems that some of the leading retailers are not in such a hurry after all. Increases have been announced because VAT will increase from 8% to 10%.

The new VAT of 10 percent will apply to hotel services, computers, utility services, books, dailies, fuel, theatre tickets, concert tickets...

The state counts that based on the increase in VAT, budget will get some RSD 20 billion while according to the calculation of the Ministry of Finance, citizens should notice this increase in costs which would be 0.7% higher.

The largest retail chain in Serbia - Delhaize - will not step into the New Year with higher prices and final decision upon this matter will be made after January, mainly based on market terms.

- The decision to keep the prices at the same level during January is made in a bid to meet the requirements of our customers once more during “the longest month in a year” - said Jelena Knezevic-Vlahovic, vice president for category management at Delhaize Serbia.

(Photo: Ivana Vuksa)

Roda is not changing prices either. As announced, the company agreed with suppliers to expand its group of products within the social basket as of January 1 2014, when the new VAT becomes effective, to include the items with the lowest prices in the market.

- Roda will continue to provide its customers with numerous benefits such as regular discounts, weekend actions, 10% discount over the weekends in all Roda mega markets as well as 10%discounts for the retired every Wednesday – Roda announced.

As they added, they offered citizens the most convenient terms of delayed check payment up to a year but also convenience of using Mercator Pika card which enables customers an annual savings of more than RSD 30.000, additional discounts on goods of up to 6% through the score collection system as well as a delayed payment in 12 interest-free monthly installments and other expenses.

Due to worries that fall in purchase power will continue, Veropoulos decided to enable an option of deferred payment of up to 180 days using checks, interest-free and without additional costs, regardless of the amount. Up till now, delayed check payment of up to 120 days has been effective, i.e. in four installments.

What will go cheap in 2014?

Although it seems unbelievable anything will go cheaper, experts estimate this is likely to happen.

Namely, whoever plans to buy an expensive car or office space, next year will be a bit more convenient. Milk and dairy products will be cheaper due to tariff decrease.

As Blic reports, a hectare of cultivated land in Vojvodina will probably cost 9,000 instead of 10,000 euros. The reason is lack of money among farmers. Office space prices should decrease by 10-20%.

Cars will be cheaper for some 2.5% since import duties will be abolished as of January 1.

J. DJ.