I mean, that’s basically the way it works. Here it’s just ‘transparent’.
Want to pay workers more - food gets more expensive. It’s the same thing with America not adding sales tax to the sticker price. When I get something for 2 bucks in Europe, it’s 2 bucks including the vat. In America, it’s 2 bucks before vat.
But yeah, it’s probably not properly implemented and just a scheme to get more money out of people.