2024 Author: Jasmine Walkman | [email protected]. Last modified: 2023-12-16 08:29
If the price of electricity rises, bread and pasta will also rise by about 10 percent, producers say. The industry says the cost of living is between 5 and 12 percent of its final value.
If they do not pick up the price of bread, the bakery sector is threatened by bankruptcies and mass layoffs. On average, the electricity bills of a normal bakery cost around BGN 1,400. Large companies pay bills between BGN 25,000 and 30,000 per month.
A 20% increase in these costs will definitely change the cost of the product and there is at least a 5% increase in the price of the final product, Nova TV reports.
There will be an increase in prices for snacks that also rely on electricity.
According to Ivo Bonev from the Association of Bakers in Varna, producers in Bulgaria are forced to raise the prices of both bread and pasta, because otherwise they will have to cut staff and salaries.
The chairwoman of the Grain Advisory Council, Mariana Kukusheva, on the other hand, says that if VAT is reduced to 5%, the price of bakery products will fall by 15 stotinki.
Kukusheva says this is the only way consumers will not feel that the price of electricity has risen while shopping for food. Differentiation of VAT up to 5% is a decrease of 15% of its real value.
Such a reduction will reduce the final price of bread by 12%, and 3% of VAT will remain in the chain for additional costs.
The more the VAT is reduced, the more or less the price of the final product will be reduced - the expert explains.
The planned increase in electricity is likely to affect the entire food sector, as they all use electricity to produce goods. So far, however, individual producers have not announced what increase consumers should expect.
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