Prime Minister Justin Trudeau’s threat of new taxes on grocery chains in Canada may not be able to rein in soaring food prices, analysts say. There is a fear that the price of other products will also increase due to this. This information is known from a report of the British news agency Reuters.
Justin Trudeau announced on Thursday that he has invited the heads of Canada’s five largest grocery chains. They will talk about how to control skyrocketing food prices. If their plan doesn’t work, the government could also impose taxes, Trudeau said.
Across the world, especially in Europe, common people are gasping because of high food prices. Due to the Corona epidemic and the Russia-Ukraine war, the prices of food products are increasing uncontrollably all over the world.
The French government also took such a decision in June this year. Analysts, however, are skeptical of Trudeau’s warning. They say it is a political strategy. This is less likely to reduce the price of food.
Nicola Wealth’s portfolio manager Ben Jang said, “Prime Minister Justin Trudeau and Commerce Minister Francois Philippe Champagne have given strong warnings in this regard. But they did not clarify on what issue they will take action against the traders.
Michael Ashley Schoolman, chief investment officer at Running Point Capital Advisors, said the new tax could backfire. Prices of daily commodities may increase further.
Alan Small, senior investment adviser at IA Private Wealth, said the government actually wants to alleviate people’s frustrations. But I don’t think this will have much positive effect.
On Thursday, French supermarket chain Carrefour slapped ‘overpriced’ stickers on everything from Lindsay chocolate to Lipton tea. A warning to big food companies like Nestlé, PepsiCo and Unilever. Carrefour is said to have taken this step to ensure that companies keep their prices within the reach of the common man.