The price of a standard loaf of bread is now pegged at $1.20, a 20% increase from last month as new taxes introduced by Finance minister Mthuli Ncube in the 2024 budget begin to bite.
Ncube has already been forced to revise some of the
measures in his $58,2 trillion budget
that saw the introduction of a raft of new taxes.
A survey by The Standard at some major supermarkets in
Harare showed that bread now costs between $10 000 and $11 000.
Confederation of Zimbabwe Retailers president Denford
Mutashu attributed the increases to movements in the exchange rate.
“The increase is at the supply side that has captured the
movement of the exchange rate both on the official and unofficial markets,”
Mutashu said.
At tuckshops in Harare’s Arcadia suburb bread is being sold
for US$1.20 while some traders in high density suburbs are charging US$1.10 for
a loaf of bread.
Grain Millers Association of Zimbabwe (GMAZ) president
Tafadzwa Musarara said the price of wheat has not been increased.
“We have not increased the price of wheat,” Musarara said.
“You will have to talk to the National Bakers' Association of Zimbabwe (NBAZ)
to understand why the price of bread has gone up.”
NBAZ president
Dennis Zinyama said the prices increases were linked to new tax measures.
“Previously, when
bread was zero-rated as a taxable supply, bread manufacturers could claim, from
the Zimbabwe Revenue Authority, input tax charged on production and
distribution costs,” Zinyama said.
“Bread manufacturers were, therefore, not factoring these
costs into the pricing of bread.
“In the new Finance Act, bread has been changed to an
exempt supply status, implying that input tax is no longer claimable.
“Consequently, manufacturers are compelled to incorporate
the tax portion into the cost of production and distribution.” Standard
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