Commentary
As if shrinkflation wasn’t painful enough for all of us, it looks like the taxman is making shrinking packages even more painful for our wallets.
Shrinkflation occurs when a food manufacturer reduces quantities but continues to sell the product at the same price. We have seen this happening pretty much everywhere in all sections of the grocery store. It’s even happening in the fresh section, with strawberries and blueberries.
The Canada Revenue Agency (CRA) has provisions that make some smaller products taxable that aren’t in their larger forms. This policy is not new; it actually dates back to 2007, when the GST/HST memorandum was revised. Some articles of the memo even existed back in 1997….