# France could tax food industry over high prices – finance minister
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-05-11
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: France May Tax Food Industry - Finance Minister Warns Over
Meta Description: French government threatens tax measures on food industry if talks do not lower high prices. Finance Minister warns of using taxes to claw back profits from
URL: https://financedigest.com/france-could-tax-food-industry-over-high-prices-finance-ministerhtml

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# France could tax food industry over high prices – finance minister

PARIS (Reuters) – The French government could use tax measures to claw back profits from the food industry if it does not accept talks on high prices, Finance Minister Bruno Le Maire said on Thursday.

With food inflation running at a record 15% in recent months, the government is furious that retail prices remain high despite declines in raw material prices.

Le Maire said that the food industry was reaping big profits and that it must reopen annual negotiations with retailers and lower their prices.

“If ever the food industry does not return to negotiations … we will use all measures at out disposal, including taxes, to recover profits unfairly made on the back of consumers,” Le Maire told journalists [ahead of meeting](https://www.financedigest.com/japanese-businesses-pledge-uk-investment-ahead-of-sunak-meeting.html "Japanese businesses pledge UK investment ahead of Sunak meeting") with representatives of big retailers.

French food prices spiked after food companies and retailers agreed to a 10% average [increase](https://www.financedigest.com/food-fiber-market-to-exhibit-increased-demand-in-the-coming-years.html "Food Fiber Market to Exhibit Increased Demand in the Coming Years") in prices in annual negotiations in March, which both sides said was necessary to cover higher production costs.

But with high [food prices buoying overall inflation](https://www.financedigest.com/with-uk-food-price-inflation-at-46-year-high-lawmakers-launch-probe.html "With UK food price inflation at 46-year high, lawmakers launch probe"), Le Maire has repeatedly called for negotiations to be reopened to ensure that the global fall in raw materials filters through to consumers.

Under pressure after forcing through an unpopular increase in the retirement age, President Emmanuel Macron’s government is eager to be seen tackling citizens’ every-day problems, such as surging [food prices](https://www.financedigest.com/mr-kipling-maker-premier-foods-to-stop-price-hikes-this-year.html "Mr Kipling maker Premier Foods to stop price hikes this year").

(Reporting by Leigh Thomas; Editing by Alison Williams and Jon Boyle)


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