Kazakh entrepreneurs are set to be fined for markups on social food products.
According to media reports, currently for a first violation regarding exceeding the established trade markup on social food products of no more than 15%, an entrepreneur is issued a warning.
First Vice Minister of Trade and Integration Aizhan Bizhanova stated that the authorities now plan to replace the warning with a fine ranging from 5 MCI (18,460 tenge) to 150 MCI (553,800 tenge). The document is set to be submitted to the Majilis soon.
It has become known that since the start of the year, businessmen have been issued 2,807 fines totalling 11.8 million tenge for exceeding markups. Overall, authorised bodies have identified more than 900 schools, kindergartens, and hospitals where products were purchased at inflated prices.
In a regional breakdown, the situation is as follows:
- In the Aktobe region, the cost of food products was reduced in 26 kindergartens with markups ranging from 100% to 500%;
- In Kostanay, 35 social institutions purchased products with markups of up to 180%;
- In Astana and the Mangystau region, 85 million tenge was saved in 50 kindergartens.
Recall that in May, the Agency for Financial Monitoring (AFM) identified cases of price inflation for socially significant food products (SSFPs) supplied to kindergartens in Astana. The agency managed to reduce prices under supply contracts for SSFPs in 21 pre-school institutions. The savings amounted to more than 31 million tenge.
In April, the AFM reduced the purchase price of food products in the SSFP basket in the East Kazakhstan Region. It was then discovered that the State Institution "Centre for Supporting Children with Special Educational Needs" of the East Kazakhstan Region Education Department was purchasing SSFPs from an entrepreneur at inflated prices. As a result, the purchase price for carrots was reduced by 35% (from 325 to 242 tenge), and for cabbage (from 380 to 238 tenge) by 60%.
In April last year, the AFM in the Karaganda region identified an excessive markup on eggs and reduced prices for potatoes. Additionally, the agency identified inflated prices for sugar in Zhezkazgan, rice in the Kyzylorda region, and kefir in the Abai region.