The Voli company has urged the Government to align duties with those in the European Union, which would create an opportunity for reduced prices in Montenegro.

In response to calls for a boycott of their markets, Voli stated that they offer the lowest prices in Montenegro. They raised concerns that the motivation behind the boycott might not purely stem from consumer interests but could be rooted in other agendas unrelated to trade or the economy.

The organization Alternative Montenegro announced plans to encourage citizens to partake in a seven-day boycott against a specific retail company, conducting a poll to determine which company it would be by tomorrow. Current results indicate that 64% of those surveyed have opted for Voli.

Below is the full statement from the retail chain:

“Voli Company has previously addressed the public multiple times regarding pricing matters, but out of respect for consumers’ right to boycott, we have refrained from commenting on this particular issue thus far. We now believe it’s essential to present facts that will enable citizens to understand the reality of the situation and become well-informed.

Attributing the blame for inflation solely to retail chains is merely a diversion from the more pressing issues at hand.

We acknowledge that prices are unreasonably high, but it is important to note that market prices are not the root cause of inflation; rather, they are a result of it.

We encourage the public to heed the opinions of professionals, who have consistently explained that ongoing boycotts do not facilitate any positive outcomes for anyone involved: not for the economy of our nation, nor for workers in the retail sector, suppliers, local producers, particularly in agriculture, and thus not for the citizens of Montenegro.

The Government of Montenegro itself has recognized that prices at Voli are lower than those in Serbia and Croatia, with all relevant information available on the Government’s official website. Our gross margin is the lowest in the region, a fact also acknowledged by the Government of Montenegro. Evidence can be found here: https://www.gov.me/dokumenta/9c28aba7-f9bb-4c0e-855f-ca6c1eb8c0f3

Contrary to popular belief, it is crucial to highlight that in Croatia, duties are lower while margins are higher than in Montenegro, where we face lower margins and increased state levies:

Figure 1: Tax rates in Montenegro compared to Croatia (an EU country):

Reduced VAT on basic food products: 5% in Croatia, 7% in Montenegro. For product categories such as Fish, along with Fruits and Vegetables, the VAT in Croatia is 5%, whereas in Montenegro, it stands at 21% for the same items.

Figure 2: Tax burden in Montenegro compared to Croatia (an EU country)

Figure 3: Product categories with the highest taxation: Voli’s scenario

Note: There are 15 product categories subject to taxation, totaling 22,141 items, of which 8,951 items incur some form of tax (such as excise and/or customs duties).

Taxed items constitute an average of 42% of sales across all listed categories.

• The “Limited Prices” campaign demonstrated that capping margins did not effectively reduce prices, as the margins on essential food items are already at the minimal threshold of profitability.
• Salaries at Voli have undergone several increases since 2021, with our payroll budget rising from 19 million euros the previous year to 30 million euros last year.
• For decades, we have been actively involved in charitable initiatives, supporting education, healthcare, culture, and sports.
• We have no outstanding salaries or unpaid obligations to the state and our suppliers.

Individuals lacking insight into economic and market principles often make superficial claims in the media, leading to confusion among citizens and guiding them toward erroneous conclusions.

As a company vital to the livelihoods of tens of thousands of people, both directly and indirectly, we bear a significant responsibility. We are committed to our consumers and empathize with their frustrations and desire for immediate change.

Nonetheless, targeting the largest and most successful retail chain offering the lowest prices and best selection will not yield positive results.

Voli consistently maintains the lowest prices and will strive to continue doing so in the future. Our focus remains on our operations in service to our employees, loyal customers, and the entirety of the Montenegrin economy and society.

For three decades, Voli has provided the lowest prices, the finest selection, proven quality, and adherence to hygiene standards. We confidently assert that our markets and our team are the best in Montenegro. Without our effective management, logistics, procurement, and investments, prices in Montenegro would be even higher.

We will provide specific examples illustrating the factors contributing to elevated prices:

We urge the Government of Montenegro to reduce taxes to align with those of European Union countries. To date, we have consistently reached out to the Government, both directly and through the Chamber of Commerce, engaging in various initiatives like “Stop Inflation” and “Limited Prices.” We remain willing to continue these partnerships in the future.

We pose a crucial question: Are the true interests of consumers being obscured by the boycott’s organization, or are there alternative motives unrelated to trade or the economy?

The Management of the VOLI Company.

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