The new law also contains provisions for pricing imports and exports and for establishing retail prices of consumer goods. Retail prices will include a profit for the trade organization and a variable turnover tax applied to the wholesale price. The tax is to be relatively low on goods produced for children and high on those manufactured in small quantities and on luxury products. Changes in retail prices may be made only in the light of planned provisions for the real income of the population. Authority to set prices and control over the implementation of price policy will be shifted from the Council of Ministers to the Council of State and the Grand National Assembly. The Council of State will make decisions not only concerning general price levels and price changes but also about specific prices for products and services of particular importance to the economy and the standard of living and on prices of products earmarked exclusively for the defense sector. In an effort to ensure a uniform price policy under a decentralized process of price fixing, the law spells out the responsibilities of all entities concerned with pricing, from the Council of State down to the individual enterprise. Jurisdiction over prices for products and services is to be allocated among the various sectors and levels of the economy, and the State Committee for Prices will be responsible for the correct application of the law. In order to prevent further abuses in the formulation and changing of prices, a state price control inspectorate is to be created within the State Committee for Prices with power to supervise price control agencies in each county. Penalties for infractions of trade regulations have been increased to 2,000 lei, and persons guilty of price irregularities will be subject to prosecution under sections of the penal code on profiteering and fraud, which provide for imprisonment of from six months to seven years. The intricacy of price formulation, the complexity of the price law (which contains 157 paragraphs), and disagreement among officials about the efficacy of some of the law's provisions suggest that the new measure may not be the final answer to the country's price problems. The determination of the authorities to retain firm control over prices and not to allow market forces to play any significant role in price determination, however, was made clear in a statement by the chairman of the State Committee for Prices to the effect that the building of socialism cannot be directed by transferring the leadership and decisionmaking to some self-regulating mechanism or to instruments that cannot be controlled. BUDGET