The government's plan to exempt fresh fruit and vegetables from GST did not come as a surprise. Nor did the volley of criticism it received in response.
As R.Harp correctly states, All basic foodstuffs are GST free in the UK. Food sold by the restaurant / takeaways sector is however always taxed. Arguably, bread and dried, canned or fresh grains, meat and fish are more deserving of being GST free than fruit and veg, since one could starve on a fresh fruit and veg diet- or at least spend an awful lot of money to get the required amount of nutrition from it. Seems a lot like a paternalistic "eat your greens" crusade- and I say that as an enthusiastic grower and consumer of vegetables and former market gardener and orchardist.
The general public of Aotearoa-New Zealand are not fans of "experts" in Tax matters - I have been convinced for years by their careful explanations of the cost-benefits of a Wealth Tax & removing GST off fruit & vege i.e. with Wealth/Capital gains the complexity would mean the cost of administering would largely negate the amount collected (plus other downsides of avoidance etc.) and with GST on food also adding complexity costs.
HOWEVER, my blood boils when "experts" say the benefits of GST savings to "low income families" will ONLY be around $5 a week! This ignores the multiplier of switching from GST products that are less healthy to fresh fruit & vege (i.e. gains more than $5 in saving), the benefits of encouraging healthy food choices to the family and our health system, AND $5 is not nothing if you are not a wealthy tax expert! Just sayin' ...
After research which should have been done BEFORE this policy rather than after, it comes to light that this tax-'break' is highly regressive, saving a mere $2 per week for poor households but a full $11 per week for wealthy households
As R.Harp correctly states, All basic foodstuffs are GST free in the UK. Food sold by the restaurant / takeaways sector is however always taxed. Arguably, bread and dried, canned or fresh grains, meat and fish are more deserving of being GST free than fruit and veg, since one could starve on a fresh fruit and veg diet- or at least spend an awful lot of money to get the required amount of nutrition from it. Seems a lot like a paternalistic "eat your greens" crusade- and I say that as an enthusiastic grower and consumer of vegetables and former market gardener and orchardist.
I agree Kevin!
The general public of Aotearoa-New Zealand are not fans of "experts" in Tax matters - I have been convinced for years by their careful explanations of the cost-benefits of a Wealth Tax & removing GST off fruit & vege i.e. with Wealth/Capital gains the complexity would mean the cost of administering would largely negate the amount collected (plus other downsides of avoidance etc.) and with GST on food also adding complexity costs.
HOWEVER, my blood boils when "experts" say the benefits of GST savings to "low income families" will ONLY be around $5 a week! This ignores the multiplier of switching from GST products that are less healthy to fresh fruit & vege (i.e. gains more than $5 in saving), the benefits of encouraging healthy food choices to the family and our health system, AND $5 is not nothing if you are not a wealthy tax expert! Just sayin' ...
The uk have always been zero rated on food essentials
After research which should have been done BEFORE this policy rather than after, it comes to light that this tax-'break' is highly regressive, saving a mere $2 per week for poor households but a full $11 per week for wealthy households
A number of NZ First candidates have some very odd beliefs...
Winston has had very low credibility for a long time, but now it is zero. Hopefully NZ First will recede into a distant memory.