Imposing windfall taxes on energy, grocery not the “right approach”: PM Trudeau.

While at a year-end interview, Canadian PM Justin Trudeau seemingly rejected the imposition of windfall taxes on energy and grocery sectors, calling it “simplistic”.

“The last thing we want to do is put on a tax that people then just pass along to the consumers,” said the Prime Minister, stating that such taxes could do more harm than good.

“I don’t think that the simplistic solution, as satisfying as it might sound, is necessarily the right approach here,” Trudeau continued.

The NDP has been asking the federal government to levy windfall taxes on sectors such as  oil and gas sectors and on grocery store chains, with businesses party leader Jagmeet Singh deeming that the sectors were engaged in “greedflation.”

The Federal government had previously levied a similar tax on big banks and insurers, with a one-time 15 per cent tax on profits over $1 billion for the 2021 tax year imposed on the sectors.

According to reports by Statistics Canada, annual food inflation rate rose from 11% in October to 11.4% in November. The price of gas, however down 3.6 %, is still 13.7% more than what it was last year.

As of November, the recorded inflation rate was 6.8%. While gasoline and furniture prices went down, prices of food and rent were up.