MTHULI'S TAXES PUSH BREAD PRICE UP newsdzeZimbabweNewsdzeZimbabwe

MTHULI’S TAXES PUSH BREAD PRICE UP newsdzeZimbabweNewsdzeZimbabwe

The price of a standard loaf of bread is now $1.20, an increase of 20% from last month, as new taxes imposed by Finance Minister Mthuli Ncube in the 2024 budget take effect.

Ncube has already been forced to review some measures in his $58.2 trillion budget
Which saw the introduction of a set of new taxes.

A survey conducted by the Standard newspaper in some major supermarkets in Harare showed that the price of bread now ranges between $10,000 and $11,000.

President of the Zimbabwe Retailers Association, Denford Mutasho, attributed these increases to movements in the exchange rate.

“The increase comes from the supply side, which has captured the movement of the exchange rate in the formal and informal markets,” Mutashu said.

In the bread shops in the Harare suburb of Arcadia, bread sells for US$1.20, while some traders in densely populated suburbs charge US$1.10 for a loaf of bread.

Grain Mills Association of Zimbabwe (GMAZ) president Tafadzwa Musarara said the price of wheat had not increased.

“We did not raise the price of wheat,” Musrara said. “You will have to talk to the National Bakers Association of Zimbabwe (NBAZ) to understand why the price of bread is so high.”

Denis Zinyama, president of NBAZ, said the price hike was linked to new tax measures.

“Previously, when bread was zero-rated, bread manufacturers could claim from the Zimbabwe Revenue Authority input tax on production and distribution costs,” Zinyama said.

“Consequently, bread manufacturers did not take these costs into account when pricing bread.

“In the new Finance Act, the status of bread has been changed to exempt supply status, which means that input tax is no longer claimable.

“As a result, manufacturers are forced to incorporate the tax portion into the cost of production and distribution.” standard

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