It is increasingly difficult to know which foods are taxable and which are not when grocery shopping.
• Also read: Bill 72: this tax that you may be paying without knowing it will no longer be hidden at the grocery store
• Also read: Grocery store taxes are “immoral”
• Also read: Reduction: Ottawa considers forcing grocers to warn consumers
It is for this reason that the agri-food industry specialist at Dalhousie University, Sylvain Charlebois, is campaigning for a debate to be held on the question of the tax status of food.
The latter asserted his position this week in the National Assembly, as part of the study of Bill 72 aimed at providing better price transparency.
“People don’t realize that there are more than 4,000 products that are taxable at retail and often certain products are healthy,” he explained on LCN.
It is well known: basic foods (meat, cereals, fruits, vegetables, eggs, bread, fish and dairy products) are not taxable. However, it gets complicated when it comes to several other types of foods.
“If you buy a small dish of sushi, it is taxable, but a dish for a few people is not taxable,” says Sylvain Charlebois.
He even considers that the tax on certain foods is “immoral”.
“Caesar salad for 4 people, for example, I’m not sure it’s a good idea to tax it,” proclaims the food industry specialist.
Reduflation, or the reduction of the formats of certain foods without adjusting the price, also changes the tax status of several products. Thus, a food may or may not be taxable, depending on its format.
“It’s a fiscal hodgepodge at the grocery store that confuses consumers,” laments Mr. Charlebois.
This situation means that despite more reasonable consumption habits, many consumers may find themselves paying more for their grocery basket.
“More and more, we are going to have small households. People are getting older and buying less food, but small portions will be more and more taxable due to reflation,” says the expert.
To help you see things more clearly, here is a guide to foods that are taxable or not depending on their format:
Ice cream
– Container of 500 ml (500 g) or more: not taxable
– Container of less than 500 ml or 500 g: taxable
Sweet baked goods (pies, tartlets, muffins, cupcakes, etc.)
– Package of six or more individual portions: not taxable
– Package of five individual portions or less: taxable
Cereal bars and muffin bars
– Package of six or more individual portions: not taxable
– Package of five individual portions or less: taxable
Pouding
– Package of several individual portions: not taxable
– Jar of less than 425 g: taxable
Fruit drinks containing 25% or more natural fruit juice
– Portion of 600 ml or more: not taxable
– Portion of less than 600 ml: taxable
Vegetable juice
– Format of 600 ml or more: not taxable
– Format less than 600 ml: taxable
Non-carbonated water
– Format of 600 ml or more: not taxable
– Format less than 600 ml: taxable
To see the full explanations, watch the video above.
Related News :