The Labour Party has set the goal of removing GST from fruit and vegetables if returned to power after the October 14 election. This step will cost about $2 billion over four years, will apply only to non-processed fresh and frozen fruit and vegetables and is expected to save every household just shy of $5 a week.
It comes as part of the party's tax policy, which was announced today in Lower Hutt — and includes a declaration from finance spokesman Grant Robertson that Labour would not introduce any new taxes.
Labour leader Chris Hipkins said the policy would "ease pressure" on the cost of living for families "as we get through this inflationary cycle". "Inflation is tracking downwards, including food price increases, but food is always a big cost for families, so this is a good policy for today and the future. Other countries, including Australia, take GST off fruit and vegetables. In fact, most countries that have a form of GST have carve-outs for certain items, and if anything, New Zealand is currently an outlier."
Taking GST off fruit and vegetables and increasing Working for Families would make many low and middle income households with young children about $30 a week better off by next year, he said.
Source: 1news.co.nz
