Vusumuzi Dube
Nobukhosi Ndlovu, Sunday News Reporter
Schweppes Zimbabwe has increased the price for the beloved beverage Mazoe by 29 percent due to a raft of taxes imposed by the Government in its latest national budget.
In a statement, Schweppes Zimbabwe said the sugar tax charged at US$0,001/g has a bigger impact on Mazoe prices than on other ready-to-drink beverages because it is calculated per gramme instead of per milliliter.
“Unlike VAT, the sugar tax is a cost to the business, whose funding carries the cost of money. Supply to formal retailers and wholesalers comes with longer payment terms. The effect is strain working capital as the tax has to be paid before customers have paid,” Schweppes said.
Schweppes said in addition to Mazoe, other products under the Schweppes brand will also see price hikes.
Schweppes recommended price increase from US$3.50 to UD$4.50, but it has breached US$5 in some shops.
Bongani Ndlovu