The French government has announced that it is considering introducing a refund tax to return some of the profits from the food industry to the state budget if it does not agree to price reduction talks, Reuters reports.
The leadership, led by Elizabeth Bourne, is furious that retail food prices remain high despite falling commodity prices. In recent months, food inflation in France has reached 15%, which is a record level for this country.
French Finance Minister Bruno Le Maire said the food industry is making big profits and its representatives should agree to resume annual price cut talks with retailers.
“If the food industry does not return to negotiations (…), we will use all the measures at our disposal, including taxes, to recover the profits unfairly registered on the backs of consumers,” the French minister said before a meeting with major players in the retail market .
Food prices rose sharply in France after food companies and retailers agreed to raise shelf prices by an average of 10% during talks in March, with both sides saying the move was necessary to cover high production costs.
New economic problems for the government of Emmanuel Macron
But with rising food prices outpacing headline inflation, Le Maire has repeatedly called for renewed talks to ensure lower commodity prices are reflected in consumers’ pockets.
Analysts also note that the government of President Emmanuel Macron wants to be seen as concerned about the everyday problems of the French, as the Elysée leader’s popularity has hit its lowest level since he became president.
The situation is related to the adoption of a controversial reform of the pension system, which involves raising the retirement age, which the Macron government adopted in a special order, without the approval of the parliament, and which the French president quickly announced despite protests. degree
The rise in food prices in France comes despite assurances from major retailers in early March that they would offer the “lowest possible price” on the shelf for staples.
Bruno Le Maire on Monday rejected an option to cut France’s VAT rate, which he said would be too expensive for public finances and ineffective in lowering prices.
Source: Hot News
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