Bread and flour may increase in price by over 25% , if policymakers decide not to keep the zero rate on them. This is what industry experts are predicting, if the 2025 Budget does not stipulate that the zero VAT on daily consumption will remain, as is the practice in many countries.
“Various well-paid experts have already spoken about such a hypothesis. Refund of 20% VAT on bread and flour, plus additional price increase, subject to trade mark-up, which varies at their discretion. Thus, in the end, a high price would be formed," Mariana Kukusheva, president of the National Union of Bakers and Confectioners, told "Labour".
Kukusheva added that it is important for people to know that the subject of price is a political one, and how much a loaf of bread will cost depends on the political formations for which we will vote on Sunday - they will determine its fate. “Bread is the only one that keeps its price for months, precisely because of the zero rate. Thanks to her, the industry came out of the gray sector and maintained relative stability.
If the 20% VAT is returned from January 1, the price of flour and bread will increase uncontrollably, Kukusheva warned. She declined to predict what price a loaf of bread might reach after the return of the rate.
The trade union reassured that a wheat crisis in our country is not imminent and there will not be. Too hot summer and drought are prerequisites for good wheat ripening and high protein qualities.