The London Free Press

Time to talk about Canada's food environmen­t

- SYLVAIN CHARLEBOIS Dr. Sylvain Charlebois is senior director of the agri-food analytics lab and a professor in food distributi­on and policy at Dalhousie University

As Canadians sit down to their dining tables, the financial burden of what lies on their plates extends beyond mere calories. Recent data from Statistics Canada paint a stark picture of household disposable income being consumed by food retail across the provinces, with a noteworthy correlatio­n to the tax rates levied on their earnings.

The bar chart representi­ng the percentage of disposable income spent on food retail in 2022 and 2023 shows Newfoundla­nd and Labrador leading the charge, with 11 per cent of household income dedicated to sustenance — up 1.1 points from 2022. This is closely followed by Quebec, up 0.6 points from 2022; Nova Scotia, up 0.2 points from 2022; and New Brunswick, up 0.3 points from 2022. While they all hover around the 10 per cent mark, in stark contrast, Alberta expends only 8.1 per cent, the lowest among the provinces.

Simultaneo­usly, a table detailing the income tax rates reveals a story in parallel. Quebec, despite its renowned culinary culture, imposes a notable tax burden on its residents, with rates climbing to 19 per cent on income just shy of $100,000. This is the province where citizens dedicate a significan­t portion of their income to food, second only to Newfoundla­nd and Labrador, which also features tax rates higher than the national average.

Is it a mere coincidenc­e that provinces with higher tax rates see a greater share of income going toward food? Or is this an indicator of a larger economic narrative where the tax burden intersects with the cost of living, amplifying the impact on disposable income and, consequent­ly, on food affordabil­ity?

Consider this: taxes affect disposable income, which in turn influences purchasing power. The interplay is especially evident in the realm of food, a necessity that consumes more of the household budget in regions with higher taxes. The situation raises a question of policy and priorities: Are we taxing our way into tighter kitchen budgets?

Provinces like Alberta, with its lower tax rates, see a lesser percentage of income spent on food. This leaves room for investment in quality, nutrition and diversity. It also might create a wider economic space for citizens to engage in other sectors, bolster savings, and stimulate local economies beyond the grocery store aisles.

Furthermor­e, there's an element that transcends the raw numbers. These figures do not only represent economic data, they reflect the lived realities of Canadian families. The percentage points translate into decisions about whether to buy fresh fruit or canned, organic or non-organic, local or imported. They influence lifestyle choices, dietary health, and, in broader terms, the wellbeing of communitie­s.

Provinces, the federal government and policymake­rs must heed these statistics as more than fodder for fiscal debates. They are a call to action to balance the scales between taxation and affordabil­ity. With food prices continuing to escalate worldwide, there's a pressing need to ensure tax policies don't inadverten­tly tighten the financial belts of Canadians around their dinner tables.

A policy re-evaluation seems prudent, one that considers the cost of living, particular­ly food, in its formulatio­n. It could be a step toward ensuring that families in Quebec, Newfoundla­nd and Labrador, and indeed across all provinces, are not disproport­ionately burdened by a basic human need.

As we navigate the complex web of economic policies and their social consequenc­es, Canada stands at a crossroads.

Will the country adjust its fiscal policies to nurture not just a healthy economy, but also a healthy populace? The data is on the table, and it's time for a national conversati­on about the recipe for a balanced, affordable, and nutritious food environmen­t for all Canadians.

Newspapers in English

Newspapers from Canada