Procurement prices for farm products have been deliberately kept low in relation to industrial prices; prices for farm requisites and consumer goods, on the other hand, have been fixed far above cost through the medium of a turnover tax channeled into the budget. In this manner the price system has served to transfer resources from agriculture to industry and to keep consumption low for the benefit of investment. Pending the completion of price reform legislation, a provisional measure was adopted in 1970 to lower wholesale prices for export goods and to reduce excess profits through a so-called regularization tax on domestic sales of the main products manufactured by state industry. The measure involved a recalculation of wholesale prices, based on the average cost of products within an industrial branch and a profit allowance of only 10 percent of cost. The difference between the recalculated prices and those in effect at the time was to be channeled into the budget by the tax. In the case of high-cost producers who would suffer losses under this procedure, the profit margin included in the price could be raised to a maximum of 15 percent. The new price measure put pressure on enterprises to lower the cost of production. The comprehensive new law on prices for goods and services that will come into effect in March 1972 will have no immediate impact on prices. On the basis of criteria outlined in the law and upon approval by the State Committee for Prices, economic ministries, central government agencies, collectives, and other public organizations are supposed first to issue norms for establishing and correlating prices within the areas of their respective jurisdictions, in accordance with the specific conditions of each producing branch, subbranch, or group of enterprises and the specific features of each product and service. The law makes provision for fixed and ceiling prices. Both types of prices may be either uniform or differentiated. Uniform prices will apply throughout the entire country and will be applicable to the main products and to services of major importance to the economy and the standard of living. Differentiated prices for a product may be set at various levels depending upon territorial or seasonal factors and the nature of the producers or buyers. These provisions will also apply to agricultural procurement prices. As in the past, uniform wholesale prices will be based on pre-calculated average costs for each product at branch level. For the first time, however, cost will also include taxes on capital and land (interest and rent) and expenditures for the introduction of new technology. An important change will also be made in determining the profit element of the wholesale price. In the future the planned profit level for enterprises, differentiated by branch and subbranch, will be calculated in relation to the fixed and circulating capital employed rather than in relation to cost.