Officially is indicated only 40-50% of the real trade, Sevgim Rakhmanov

At the moment it is very difficult to talk about the local production, as most of the components are imported products, said in an interview to "Çətin sual" ("Difficult question") of the Turan agency the head of association of merchants and manufacturers Sevgim Rahmanov.

As an example he noted the raw material for sugar and tea, which are imported into the country, and then produced. "But all this is called local production," he said.

Rahmanov believes that for proper regulation of trade sector appropriate law should be adopted, rather than the decisions of the Cabinet of Ministers, as it is now. It is because of this confusion in trade and processes in this sector are illogical.

"In the domestic market price formation is based on collusion. Thus, the dollar has risen 100% since last year. For bananas, which before the devaluation cost 2.30-2.70 manat, and after the devaluation fell to 1.70 manat. How can it be? Logically the price of this product should grow up to 4 AZN ", he said.

This is not an example of monopolistic collusion, but also it means how much the original price of bananas had been overstated.

The same situation is with cigarettes. "Cigarettes are imported into the country by 4-5 companies and there is a local production. But the price for cigarettes is the same across the country. This is impossible in a competitive environment," he stressed.

In most cases, the price is not formed on the basis of supply and demand. It is set by officials who are engaged in business, and so it is impossible to talk about competition in the market. Referring to the statistics of the turnover and the presence of the shadow economy, Rahmanov said that the official statistics indicates 40% -50% of the real trade. The volume of trade is determined by invoice, but today not many people use it.

"In these circumstances, the tax authorities establish the turnover on the basis of indications of cash registers. However, it is no secret that not all products pass through the cash register "in the shops, - he said.

The expert believes that the prices are also formed incorrectly. Real trader, for example, during the holidays reduces prices to make a profit from the trade. However, in our country, on the contrary, in the pre-holiday price rises sharply.

"The Prosecutor's Office in its annual report said that in the year 20016 were instituted 14 criminal cases for the artificial increase in prices. However, in a market economy one cannot dictate the dealer for what price he has to sell his goods, except for products for which prices are determined by the Tariff Council," he said. -71D-