Maize Meal prices defies Pegzozo ‘s VAT interventions

Following government’s intervention on the ever rising inflation and prices of commodities, the Competition and Consumer Authority (CCA) has been monitoring prices and it shows some prices have gone down since the decrease of VAT by two percent.

Government last month moved with interventions which attempted to ease the high cost of living or the ever soaring prices of commodities, something which is estimated to have cost government close to P2 billion, consumers and retailers are at the end of a prices war now.  

The government interventions in July came at the backdrop of inflation skyrocketing at 12.7 percent, a nudge up from the May 11.9 percent. The July inflation is the highest since January of 2009, the year of the Great Recession. The Russia-Ukraine war and Covid-19 after effects is affecting global energy prices as the Pula continues to erode against the US Dollar. Inflation is still climbing up and now at P14.3 percent. 

Government announced adjustment of VAT from 14 percent to 12 percent and in cooking oil and liquidfied petroleum gas it was to be at zero percent. A lot of prices decreased but the price of White Star Maize meal 2.5 kg increased by P2.00 and it is believed to be the stubborn export prices. Maize export prices are believed to be soaring and this is affecting its by products like the snacks and other products. 

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