If traders attempt to unjustifiably raise prices during the transition to the euro, the National Revenue Agency (NRA) will detect it through discrepancies in VAT declarations. This warning came from the agency’s director, Rumen Spetsov, as he outlined a new joint initiative aimed at protecting consumers from speculative pricing. The NRA, together with the Consumer Protection Commission and the Commission for Protection of Competition, signed an agreement for coordinated actions to monitor the market throughout the currency changeover.

According to Spetsov, tax inspectors will compare price increases with corresponding changes in VAT to uncover potential profiteering. Businesses that show higher prices without a matching rise in VAT turnover will come under scrutiny. In every case where a price hike is noticed, inspectors will ask for justification based on real cost factors. The idea is to ensure that no one exploits the euro introduction as a pretext to manipulate prices without cause.

So far, joint teams from the three institutions have inspected 150 retail outlets across 30 cities, focusing on 14 essential food categories. The inspections will now expand to cover more goods and services, including restaurants, fast food places, salons, and cafes - sectors where recent price increases have already been observed.

Another issue uncovered by the authorities involves misleading dual price tags in some shops. Traders using red font to indicate euro prices - similar to how discounts were traditionally marked - risk confusing customers. Competition Commission head Maria Filipova said that such labels have been ordered removed. To help businesses comply, the Commission has published samples of correctly formatted dual pricing tags on its website. Under the euro adoption law, both the lev and euro prices must be displayed with equal size and color, and starting July 8, this will become mandatory for all retailers.

To further aid transparency, the Competition Commission is developing a mobile tool for shoppers to verify on the spot whether the displayed euro and lev prices are properly shown.

Finally, the Competition Commission is on alert for signs of collusion. While it’s not illegal for a single merchant to increase prices, if nearby businesses are seen doing the same simultaneously, it could indicate a prohibited pricing agreement. Such cases will be investigated and could result in serious penalties, noted CPC Chairman Rosen Karadimov. He emphasized that the combined enforcement efforts of the three institutions - each with its own authority - will enhance the effectiveness of the oversight during this sensitive period.