OKSZ: margin is not profit!

Margin does not equal profit. OKSZ’s international food retailers pay for:

• the dedicated work of nearly 50 thousand Hungarian employees;
• the utilities paid at market prices;
• public charges;
• taxes, such as the 4.5% retail tax paid on turnover.

This latter amount, which is close to 300 billion forints, could be invested by retailers in prices and promotions to ease the burden on Hungarian families, but instead it must be paid into the budget.

Retailers are not making a profit, most of them have been making a loss for years now, or are making a modest profit that is decreasing. In contrast, the majority of food manufacturers, who are not subject to the margin stop regulation, have also recorded outstanding profits in previous years.