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Law No. 1 Of 30 March 1988 On The Improvement Of The Economic And Financial Mechanism Through Improvement Of The System Of Price Formation

Original Language Title:  LEGE nr. 1 din 30 martie 1988 privind perfecţionarea mecanismului economico-financiar prin îmbunătăţirea sistemului de formare a preţurilor

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LEGE no. 1 1 of 30 March 1988 on improving the economic and financial mechanism by improving the system of price formation
ISSUER GREAT NATIONAL ASSEMBLY
Published in OFFICIAL BULLETIN no. 18 18 of 2 April 1988



In order to improve and operate efficiently the economic and financial mechanism, the entire system of self-driving, self-financing and self-management of the units by improving the system of price formation. The Great National Assembly of the Socialist Republic of Romania adopts this law. + Article 1 The production prices shall be formed on the basis of the planned costs as the maximum limit which cannot be exceeded, plus differentiated returns according to the destination of the products, as follows: a) 6-12 percent, on average 8 percent, for products intended for domestic consumption; b) for products intended for export, the profitability referred to in point a) is increased by 10 percent for the convertible currency relationship and by 6 percent for the relationship cliring socialist countries. For raw materials, as well as for products in the horizontal industry, the profitability is 6 percent, plus 6 percent if the respective products are indirectly intended for export. Products intended for domestic consumption and indirect export, which currently have a return of up to 6 percent, maintain their current profitability. + Article 2 The new production prices, established under the terms of this law, are approved by decree of the State Council. + Article 3 The additional benefits on account of the reduction of production costs over the planned load shall remain fully available to that undertaking in the first year and 50 percent over the next four years and shall be used according to the law. Any increase in the benefit obtained as a result of some price increases is taken over to the state budget. + Article 4 The differences between the current production prices and the new prices constitute income of the state budget in the form of tax on the movement of goods and are paid by the beneficiary socialist units of those products. + Article 5 The evaluation of the production of the goods, as well as of the other indicators deriving, shall be done, both in the plan and in the execution, on the basis of the new production prices differentiated according to the destination The evolution of the main indicators of economic and social developments is established on the basis of current prices and in comparable conditions. + Article 6 The provisions of this law apply experimentally in 1988, starting with April 15, 1988. The conclusions drawn from the experimentation will be submitted, for debate, to the Great National Assembly of the Socialist Republic of Romania by the end of 1988. ---------------