15 Aug 2023

Consumer NZ sceptical GST on fruit and veg will reach shoppers

From Nine To Noon, 9:05 am on 15 August 2023
Vegetables and fruit on a market stall.

Photo: 123rf

Labour's policy to remove GST on fruit and vegetables - previously labelled as 'boondoggle' by its own Finance Minister - has found few friends since its announcement on Sunday.

Labour is promising to take the 15 percent goods and services tax off  fresh and frozen fruit and vegetables from April 2024.

But the policy has been almost universally criticised by economists and tax experts, who argue supermarkets will not pass on any savings to shoppers and that it will be difficult to administer.

Consumer New Zealand, which pushed for the Commerce Commission inquiry into supermarkets, is also sceptical savings will be passed on. Susie speaks with Chief Executive, Jon Duffy.