Capping profit margins for replacing subsidized household appliances

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[InTime News]

An amendment tabled in Parliament on Tuesday, attached to a Finance Ministry bill on special consumption taxes, will cap the maximum profit margins for the sale of subsidized household appliances under the ministry’s ‘Change My Appliance’ scheme of Development.

The program aims to encourage a switch to more energy-efficient models by offering a subsidy for the purchase of new appliances in exchange for the retirement of older appliances, such as air conditioners, refrigerators and freezers.

The cap limits gross profits on the sale of each device to the equivalent profit per unit until December 31, 2021 with the aim of avoiding price gouging, protecting consumer purchasing power, ensuring efficiency program and that the benefits go to consumers.

The cap will apply for the duration of the Change My Device plan and violations will result in escalating penalties, ranging from a warning to stop overcharging to fines ranging from 5,000 to 1 million euros.

The same amendment also extends a law allowing the government to publish the names of companies that violate restrictions on excessive profit in times of crisis until the end of the year.

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