The control of 5,000 product codes regarding compliance with the law on the ceiling on the gross profit margin is in full progress by the Ministry of Development. The controls concern large multinational companies selling cleaning products, personal care products and even olive oil.

This was announced by the Minister of Development, Kostas Skrekas, speaking on the First Program of ERT, stating that the ministry will continue to punish those who violate the law.

He recalled the recent fine imposed on a large multinational company for violating the ceiling on the profit margin on school supplies and stressed: “We will continue to punish those who violate the law. We don’t want to drag out the companies, but for everyone to understand that the law will be applied.” The controls have an indirect effect on the market and will continue, emphasized Mr. Skrekas and added:

We are taking tough measures to intervene in the functioning of the market that no other European country has taken. These measures have led to a reduction in general inflation and a de-escalation of food inflation in the last two months.”

In response to a question about possibility of VAT reduction he reiterated that the measure, where it has been implemented in Europe, has not worked. “It turns out, he said characteristically, that where the VAT was reduced, the benefit did not reach the consumer, but went to the pockets of the intermediate links in the supply chain.”