In a move that totally won't backfire and be passed along to the consumer, Canadian Prime Minister Justin Trudeau has threatened to tax Canadian grocers if they don't lower grocery costs.
"Large grocery chains are making record profits," Trudeau claimed Thursday. "Those profits should not be made on the backs of people struggling to feed their families."
Grocers have until Thanksgiving to stabilize prices, otherwise tax measures may be on the way for 'Loblaw, Metro, Empire, Walmart and Costco,' according to Rebel News.
Prime Minister Trudeau says he's giving major grocery retailers until Thanksgiving to come to Ottawa and explain what they're doing to stabilize/lower food costs.
— Rebel News (@RebelNewsOnline) September 14, 2023
If the grocers don't act, Trudeau says "the federal government will take action." pic.twitter.com/XA43srPPk5
Francois-Philippe Champagne, interior minister, said the Canadian government would also begin to engage with other players in the food industry.
"We're going to start with the five largest grocers in Canada, representing about 80% of the market, and we're going to be in solution mode with obvious deadlines and very clear outcomes for Canadians," he said, adding "We're going to bring them to Ottawa, talk to them about meaningful action, and if they fail, there'll be consequences."
More via Rebel News;
The call for relief comes as grocery prices rose 8.5% in July — nearly three times the overall inflation rate.
However, the Canadian Taxpayers Federation (CTF) believes another tax will not improve affordability when Canadians go to checkouts across the country.
"The last thing Canadians need is a grocery tax," said Franco Terrazzano, CTF Federal Director. "Instead of hammering Canadians with a grocery tax, Trudeau should scrap his carbon tax, making food prices more expensive."
"Another tax won't make groceries more affordable, it'll make them more expensive," he said.
Canada's Food Price Report 2023 predicted a 5% to 7% food price increase in 2023 following 10% increases last year, with vegetables, dairy and meat becoming more expensive.
The average family of four is expected to spend up to $16,288.41 annually on food this year — up an additional $1,065.60 from 2022.
"Not only are some nutritious foods more difficult to find, but they can also be more expensive," according a report, Evaluation Of The Office Of Nutrition Policy And Promotion.
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