Earlier quoted context omitted.
I used to think like that too, but in many fields, there is a huge pressure against "passing it on" because of some producers that optimise price over everything else. If your only competitive advantage is being cheaper than the rest and now everyone is raising prices, doing the same will not only hurt your appearance as the "reliable value brand", but you'll be wasting a huge opportunity to grab a big new chunk of t…
Bag taxes are already passed on to customers though.
Yes, but there are also many paper and multi-use bags available now that weren't before the tax. Because they knew the price increase would anger customers, they created alternatives that don't fall under the tax and thus give the customer a better value than the old option now with tax.
(plastic bags are, however, a pretty unique case, as they used to be free and the dynamics of "free vs paid" are way different than "paid vs paid but slightly more expensive)