Removing GST from fruit and veg may not make them more affordable, warn NZ ministers

– New Zealand’s Labour Government was warned that removing GST from fruit and vegetables may not make them more affordable.
– Health officials are investigating using the tax system to combat obesity.
– There is growing international evidence to support a tax on sugary drinks.
– Taking GST off food might not work in New Zealand.
– The Labour Party plans to exempt fruit and vegetables from GST if re-elected.
– This would cost about $500 million a year.
– The high price of healthy food and the low price of junk food contribute to a substantial risk to food security.
– Vegetables and fruit are unaffordable for many families while unhealthy foods and drinks are often heavily discounted.
– Removing GST off vegetables and fruits would not result in a direct decrease in price.

Source: freshplaza.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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