France: Surprise measure to combat fuel inflation – Newsbomb – News

Through the mouth of its Prime Minister of FranceElizabeth Bourne.

With the prices at fuel to note continuous… “rally”France proceeded to one measure – surprise, which was announced by the Prime Minister of France, Elizabeth Bourne. In particular, the government will temporarily allow the sale of fuel at prices below cost, with the aim of taming inflation.

“As some companies have rightly pointed out, they cannot afford to reduce them further prices them, because the 1963 law prohibits them from reselling at a loss. I am announcing to you that, exceptionally and for a limited time, we will lift this ban on fuel sales. In this way, the distributors will be able to further reduce their prices”, emphasized Mrs. Bourne, speaking yesterday (16/09) in Parisian.

What the 1963 law of the French Commercial Code provides

The article L442–5 of Commercial Code states that “for any trader to resell or announce the resale of a product at a price lower than its actual purchase price is illegal and constitutes unfair competition”. The law provides for a fine of 75,000 euros for those who follow similar practices and trade illegally.

The purchase price is considered to be “net unit price appearing on the purchase invoice, reduced by the amount of all other financial benefits granted by sellerexpressed as a percentage of the product’s net unit price plus sales taxes, any special taxes related to that resale, plus shipping costs.”

THE law provides some exceptionswhich are precisely defined and concern “perishable products threatened with rapid deterioration” or even “voluntary or forced sales motivated by the cessation or change of a commercial activity”.

“No” to the reduction of fuel tax at the mercy of… fiscal austerity

THE Elizabeth Bourne rejected the prospect of a fuel tax cut, citing the need to reduce the public deficit and debt. “Big companies have a role to play,” he noted. It is recalled that on the 14^the September, o Minister of Finance her of France, Bruno Lemairestated that “its high profit margins gasoline refining are a source of concern and may need to be addressed by government action.”