Decree of the Government of the Czechoslovak Socialist Republic No. 136 / 1973 Coll.
Decree of the Government of the Czechoslovak Socialist Republic on State Price Procedure
Valid
Effective from 01.01.1974
136
GOVERNMENT REGULATION
Czechoslovak Socialist Republic
of 17 October 1973
on State pricing procedures
The Government of the Czechoslovak Socialist Republic orders the implementation of § 4 (2) of Act No. 145 / 1970 Coll., on National Economic Planning, Act No. 133 / 1970 Coll., on the jurisdiction of federal ministries, § 8 (e) of Act No. 101 / 1971 Coll., on the Fifth Five-Year Plan, and pursuant to § 18 (2) and § 31 of Act No. 111 / 1971 Coll., on contributions to the state budget and social security contributions:
Contents and forms of State pricing procedure
(1) The State Price Procedure includes:
(a) planning price developments and price changes in products, services, performance, works and real estate (hereinafter referred to as "products");
(b) the arrangements for the pricing of new products and the fixing of prices by State authorities;
(c) control of prices and imposition of additional charges for breach of price regulations, for products of insufficient quality or technically obsolete;
(d) an adjustment to the scope of the pricing bodies and organisations.
(2) Prices can only be increased or reduced under conditions laid down by the Government of the Czechoslovak Socialist Republic.
State Price Management objectives
(1) The objective of the State Price Management is to create a coherent rational system of prices to promote the realisation of the objectives of the State's economic policy, specified by the State's plans for the development of the national economy (hereinafter referred to as the "State Plans"), in a consistent way to ensure the established price development.
(2) The Rational Price System creates prices which
(a) reliably fulfils the function of the value criteria of economic activity;
(b) actively assist the planned management of the national economy and the growth of the standard of living of the population, contribute to improving the economy of production and circulation, to accelerating technical development, to improving the quality and utility values of products, to effectively changing the range and to developing socialist economic integration.
Prices and other economic instruments
In order to ensure the efficiency of the State's price management, measures must be implemented in terms of prices and other economic instruments in a consistent manner. To this end, the measures which give rise to the need for price changes must be agreed in advance with the relevant price authority, with the exception of those approved by the Government of the Czechoslovak Socialist Republic; Similarly, price management measures which change the conditions under which other economic instruments have been set must be agreed by the competent price authority with the central authority to which it is competent to establish or propose such economic instruments or their amendments.
Price uniformity
(1) The prices of the products are uniform throughout the territory of the Czechoslovak Socialist Republic, unless otherwise specified in the specific regulation.
(2) The principle of price uniformity also applies to prices the determination of which is within the competence of the authorities of the Republics, as well as to prices to which organisations are responsible.
Planning of price developments and price changes
(1) The basic instrument for managing price developments, binding on all institutions and organisations, is the price development plan, which is part of the State plans.
(2) The Price Development Plan specifies the state pricing policy for the medium-term and long-term implementation plans. Its task is to determine the development of the level of prices and price changes of individual products in line with the planned development of the underlying material and value proportions and to ensure consistency with other management instruments.
(3) The planning of price developments and price changes includes:
(a) long-term pricing concepts (forecasts) and prospects for improving the price system and developing price levels;
(b) principles for focusing price developments and price changes during the planned period and criteria for planned price changes and other price measures (price measures);
(c) the choice of price measures according to the principles and criteria laid down;
(d) guidelines for the price development plan defining the material content of the planned price measures;
(e) the price development plan, including the way in which the price effects are reflected and the impact of the price measures in the State plan and in the State budget,
(f) price measures to implement the price development plan.
(4) Price changes shall be made on the basis of a price development plan or pursuant to Paragraph 1 (2). On the basis of specific rules, price changes may be made in order to favour or disadvantage the products, price changes negotiated by the supplier's agreement with the customer, and changes to incorrectly determined prices.
(5) The method of projecting planned price changes into indicators of state plans and state budgets shall be laid down in agreement with the competent authorities in such a way as to effectively affect both suppliers and customers. A special rule applies to the financial settlement of differences in the revaluation of stocks with a government budget. 9)
Price formation
(1) Prices are made up of new products whose essential quality and other delivery conditions have already been defined.
(2) The task of pricing new products is to:
(a) ensure that, when expressing the conditions for their production, circulation and implementation, the price levels established are respected;
(b) encourage the producer's interest in improving their performance and in increasing the cost-effectiveness of their production and circulation, enabling them to meet customers' needs more effectively;
(c) to make the relationship between prices and utility characteristics and technical economic parameters, in principle, more nationwide favourable than for products still produced.
(3) Suppliers may only negotiate with customers prices and price changes of products listed in a separate regulation and under the conditions laid down therein.
Registration of prices
The competent price authorities may impose an obligation on the price authorities to notify the prices of the products before they become effective so that the price authority concerned may suspend the publication of the price if it does not comply with the price regulations and to implement measures to remedy them.
Announcement of price measures
(1) The Federal Price Office, together with the price authorities of the Republics, issues the Price Gazette, in which the pricing authorities' measures are declared. Price measures for certain institutions and organisations only shall be notified in the Price Bulletin, indicating the authorities for which such measures are available for consultation.
(2) Other authorities and organisations issuing price arrangements for re-supplied products are required to send them to all competent authorities, national committees and suppliers and to customers of such products known at the time of the issue of the price measure without delay.
Labelling of products at retail prices
Products delivered at retail prices shall be marked with a valid retail price so as to be clearly visible when they are purchased on or on the product, unless otherwise specified by the competent price authority.
Price control
(1) The price control is carried out by the authorities and organisations authorised under the Specific Regulations (1) (hereinafter referred to as the control authorities).
(2) All socialist organisations are required to carry out a collection check of compliance with applicable prices and compliance with the quality and delivery conditions under which prices are set.
(3) Organisations which have been found to be in breach of price regulations are obliged to implement or propose the measures necessary to remedy them.
Additional charges for breach of price regulations (2)
(1) An organisation which, according to the control findings, has obtained funds by infringing price regulations ("unduly obtained funds") is required to transfer them to the State budget or to the budget of the National Committee ("relevant budget") as an additional levy.
(2) The additional levy shall be the sum of the funds unduly received in the period of three years prior to the 1 day of the month in which they were found and the funds unduly received after that date. This total shall not include the amounts recovered from the organisations and citizens at the expense of which they were acquired and the amounts to be recovered from them not later than two months from the date of the check finding, unless the control authority sets a shorter deadline.
(3) If the sum of the funds obtained cannot be ascertained in an exhaustive or selective manner, 5) shall be determined on the basis of the means demonstrated during the check. The additional levy is three times that. The provisions of paragraph 2 shall apply to the counting of amounts returned to organisations or citizens.
(4) In the event of a breach of the price regulation by the sale of a product for which the price has not yet been determined, or by the sale of a product for which significant quality or other delivery conditions have not been defined in the case of price fixing by the entrusted organisation and cannot be defined even according to the price calculation of the product, the additional levy shall be 3% of the value of the products delivered during the period referred to in paragraph 2. If the organisation also obtains the means for these products by violating other provisions of the price regulation, the additional levy which is higher shall be paid.
(5) If the organisation fails to comply with the obligation to submit a draft price limit or to set a price limit, the additional levy shall be:
(a) 3% of the cost of the task of the science and technology development plan, the result of which is to be a new product and for which a provisional price limit was to be set, but not more than 20% of the annual profits of the organisation's research and development activities planned for the year in which the additional levy is imposed;
(b) 3% of the price of the standardisation plan task resulting in the technical standard under which the product for which the provisional price limit was to be set is to be manufactured;
(c) 3% of the price of all products for which a definitive price limit should have been fixed and which were delivered within a period of 12 months from the start of deliveries, but at least from the price of the products planned for that period.
(6) The additional levy shall be deducted by means of which the organisation has, for the same reason, committed to the State budget or which it has issued to the State as an asset in accordance with specific rules. 6) From the additional levy referred to in paragraphs 2, 3 and 4 paid by organisations which, under special regulations, settle price differences with the risk fund, the funds unduly received in the special account of the Federation State Budget shall be deducted under the specified price differences. Illegal funds cleared with a risk fund shall be charged to it.
Imposition of additional charges for breach of price regulations
(1) The additional levy is imposed by the control authority which has detected the funds obtained from the audited organisation. However, if there is an authority which, under specific regulations, carries out a price check but does not have the right to impose additional charges, the central authority responsible for the audited organisation or the competent national committee shall deposit this levy on the basis of the control report.
(2) If the additional levy is not imposed by the supervisory authority authorised under the preceding paragraph, it shall be imposed, including the increase referred to in paragraph 5, by the price authority of the Republic competent according to the registered office of the audited organisation.
(3) An organisation which itself finds that it has obtained unlawful funds is not subject to an additional levy; the organisation already transfers it to the relevant budget on the basis of its own findings at the level determined in accordance with Paragraph 11.
(4) If the funds obtained by the organisation are ascertained by its superior Directorate-General (branch), a cooperative or social body, an additional levy shall be imposed at the level laid down in Article 11.
(5) Where the irregular funds are found by a control authority other than those referred to in paragraph 4, the additional levy shall be increased by an amount equal to the sum of the funds unduly obtained for the last year of the three-year period defined in Article 11 (2) and those obtained illegally after the end of that period until the imposition of the additional levy. In calculating the increase in the additional levy, the amounts recovered pursuant to the second sentence of Article 11 (2) shall not be deducted after the audit finding. Where unlawful funds have been returned by the inspection authority to the organisations and citizens at the expense of which they were acquired or a period has been set for their recovery pursuant to Article 11 (2), the competent authority of the audited organisation shall only require an increase in the additional levy. This provision shall not apply to the additional contributions provided for in Article 11 (3), (4), first sentence, and (5), and to the additional contributions made by investors other than their own resources or loans for the reimbursement of the funds requested by the supplier unduly as a result of a breach of price regulations. 10)
(7) The increase in the additional levy shall not apply to cases of unlawful acquisition of funds at a purchase price below the applicable price.
(8) The additional levy is imposed on a controlled organisation. Where price regulations have been infringed by the Directorates-General of Production or Commercial Organisations, the additional levy shall be imposed after consultation with the Directorate-General or the organisations which have received the funds.
(9) The obligation to return undue funds to the organisations and citizens at the expense of which they have been acquired or to transfer them to the relevant budget arises whether or not the controlled organisation has received an asset benefit by infringing price regulations. However, in the case of trade, sales and supply organisations and other organisations entrusted with trade, sales and supply performance, the additional levy or, where applicable, the increase shall be subject only to the amount by which their trade or sales premium or withholding has increased and any other amounts of asset gain resulting from the breach of price regulations. This is without prejudice to Article 11 (4) and (5) for those organisations.
(10) The implementation of the additional levy in the relevant budget shall be without prejudice to the entitlements of organisations and citizens at the expense of which the funds have been unlawfully obtained.
Additional charges for products of insufficient quality or technically obsolete 3)
(1) An organisation which manufactures and supplies a product identified by the competent authorities as technically obsolete or classified in a third grade or as a reduced-quality feed may impose the relevant price authority, the national committee or other designated authority instead of a reduction in the price or discount on the price of the additional levy.
(2) The additional contribution for a product technically obsolete shall be equal to the actual profit of the production organisation from that product, as determined by the resulting calculation made in the last year of production, but not less than 15% of its wholesale price.
(3) The additional levy on a product classified in the third grade at first or second grade evaluation or on the basis of control and reduced quality feed shall be 15% of the wholesale price. The additional levy on the product included in the third quality step of repeated evaluation shall be 30% of the wholesale price. The additional levy shall be calculated on the basis of the quantity of products actually delivered but at least the quantity to be delivered for the period of validity of the decision to classify the product in the third grade according to the disposal plan and, if this plan is not drawn up in the necessary breakdown, on the basis of delivery contracts.
(4) The additional levies referred to in the preceding paragraphs shall not be regarded as imported products; they shall not be treated as products supplied for export if their wholesale prices and, where appropriate, the registered wholesale prices are not higher than their export sales prices, or if the central authority responsible for the manufacturer so decides after consultation with the competent central authorities. Where the wholesale price and, where applicable, the registration wholesale price are higher than the purchase price, the additional levy shall be the difference, but not more than the amount referred to in paragraph 2 or 3.
Additional levy on products with insufficient export efficiency
The additional levy on products whose price disadvantage is determined on the basis of export prices shall not exceed 30% of the wholesale price or, where appropriate, the registered wholesale price. The definition of the scope of the products and the method of calculating the amount of the additional levy in accordance with the prices achieved and, where applicable, the shares of the additional levy for production organisations and for external trade organisations shall be determined by a separate decision.
Additional charges in connection with price changes
(1) An additional levy may be imposed on the organisation on the funds or part of the funds obtained as a result of a measure taken by the competent authority which is not reflected in the price of the product, in particular as a result of a change in the price of the sub-supply, a derogation from the essential quality or delivery conditions of the products supplied or other permitted changes or a price different for suppliers and customers.
(2) The additional contribution of the funds obtained as a result of the saving or material replacement measures may be imposed on that organisation only in cases defined by a specific regulation. 7)
(3) The additional levy referred to in paragraphs 1 and 2 shall be imposed by the competent price authority. 8)
Implementation of additional contributions
(3) The imposition of the additional levies provided for in this Regulation is an act of economic management.
Transitional and final provisions
_
(a) Decree of the Government of the Czechoslovak Socialist Republic No. 168 / 1969 Coll., on a transitional prohibition on price increases,
(b) § 2 and 3 of Decree No. 87 / 1966 Coll., on certain economic measures in investment construction.
This Regulation shall enter into force on 1 January 1974.
Dr Strougal v. r.
1) Act No. 103 / 1971 Coll., on People's Control, Act No. 122 / 1962 Coll., on National Agricultural, Food and Commercial Inspection, as amended by Act No. 31 / 1968 Coll., Act No. 116 / 1971 Coll., on Committees and Human Control Commissions, Act SNR No. 121 / 1971 Coll., on People's Control in the Slovak Socialist Republic, § 31 (2) of Act No. 145 / 1970 Coll., on National Economic Planning, Act No. 134 / 1973 Coll., on the Jurisdiction of the Bodies of the CSSR in the Price Field, Act No. 135 / 1973 Coll., on the Scope of the SSR in the Price, Order No. 137 / 1973 Coll., on Prices.
2) Paragraph 18 (1) (a) of Act No. 111 / 1971 Coll., on contributions to the state budget and social security contributions.
3) Paragraph 18 (1) (d) of Act No. 111 / 1971 Coll., on contributions to the state budget and social security contributions.
4) Sections 2 (1) and 19 of Act No. 111 / 1971 Coll., Section 2 of Act No. 113 / 1971 Coll., on Pension Tax and Social Security Contribution, Part Two of Act No. 112 / 1966 Coll., on Agricultural Tax.
5) The procedure for applying the selective method of establishing the irregular funds is laid down in Section 113 of the Federal Price Office, the Czech Price Office and the Slovak Price Office No. 137 / 1973 Coll., on prices, as amended by Decree No. 73 / 1978 Coll. and in the Decree of the Federal Price Office, the Czech Price Office and the Slovak Price Office No. V-6 / 74, registered at 1 / 1975 Coll.
6) E.g. § 24 and 119a of the Economic Code No. 109 / 1964 Coll. (full text published under No. 37 / 1971 Coll.).
7) Paragraph 77 of Decree No. 137 / 1973 Coll., on Prices, as amended by Decree No. 73 / 1978 Coll.
8) Ordinance of the Government of ČSSR No. 22 / 1971 Coll., establishing a list of raw materials, products, performances and services, the prices of which are determined by the Federal Price Office, as amended by the Government of the Government of the Czech Republic No. 56 / 1972 Coll. and No. 46 / 1977 Coll. and the Law of the Czech Socialist Republic No. 134 / 1973 Coll., on the competence of the authorities of the Slovak Socialist Republic in the field of prices.
9) Directive of the Federal Ministry of Finance, the Ministry of Finance of the Czech Socialist Republic and the Ministry of Finance of the Slovak Socialist Republic No. 81 of 14 December 1978 on the financial settlement of differences in the valuation of stocks in price adjustments, Financial Rapporteur amount 14 / 1978, registered in the amount of 2 / 1979 Coll.
10) Additional levy pursuant to § 112 (1) (ch) of the Federal Price Office, the Czech Price Office and the Slovak Price Office No. 137 / 1973 Coll., on prices, as amended by Decree No. 73 / 1978 Coll. and No. 160 / 1980 Coll.
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Regulation Information
| Citation | Decree of the Government of the Czechoslovak Socialist Republic No. 136 / 1973 Coll., on State Price Procedure |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 02.11.1973 |
|---|---|
| Effective from | 01.01.1974 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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