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VANESSA LAURIE/Stuff
The move to remove GST from fruit and vegetables is too complicated, say Wild Pear Kitchen director chef Chere Bailey, left, and hire owner/manager Chesney Hiroa.
The idea of taking GST off fruit and vegetables has not been welcomed in Taranaki, even by those whose businesses might seem set to benefit.
The Labour Government is promising to scrap GST from fresh and frozen fruit and vegetables from next April if it wins the general election in October – a $2 billion policy which it says will save households about $20 a month.
It comes as the price of fruit and vegetables have increased 22.5% in a year, but the policy, announced on Sunday, has been widely panned by economists as too costly and difficult to administer.
Chere Bailey, co-owner of plant-based cafe and deli Wild Pear Kitchen in New Plymouth, said the plan was too complicated.
Although people who ate a lot of vegetables could benefit from the GST coming off, for food businesses it would be tricky to calculate prices because the exempt fruit and vegetables were mixed with other ingredients when being prepared, she said.
“We cook with a lot of fruit and vegetables, but we also use a lot of other foods – lentils, beans, chickpeas, that are mixed in with the fresh produce.
“It’s a very confusing way to reduce GST. I think it would have been far easier to take 1% off everything, make it really simple, bring it down by 1 or 2% for everybody.”
Her wish was that GST would be dialled back to 12.5% or even 10%.
“Wouldn’t that be wonderful for everybody, even if GST was at 12%? It would make such a difference to everybody in these difficult times we’re in, it would be a game changer.”
Juan Zarama/Stuff
Labour Party leader Chris Hipkins wants to remove GST from fresh and frozen fruit and vegetables from April 2024.
Market gardener Pogal Moratti from Ruakiwi Gardens at Brixton is wondering how the Government would ensure the savings get passed on to customers.
“We’re looking at it, trying to get our heads around it. It has to be monitored – how would you know?”
He said they would probably take the 15% off each customers’ shop at the till, so they could see how much they’d saved.
Woolworths New Zealand managing director Spencer Sonn said in a statement that Countdown would comply with any changes to the rules around GST.
“And we’d of course pass on any savings to our customers.”
Catherine Groenestein/Stuff
Longtime vegetable growers Pogal and Lindy Moratti are wondering if the reduction in GST promised by the Labour Government will get passed on to shoppers. (File photo).
Another business owner wondering how the policy would work was Cassey Galley from Spudz, which had a retail store in New Plymouth and also sold produce through its wholesale arm.
She was hopeful it might encourage people to eat more fresh vegetables and fruit, but said there were a lot of unanswered questions.
She wasn’t sure how it would work for non-fresh produce products including eggs and milk.
“We don’t know where it begins and ends. Would we need two systems? There’s a bit to get ironed out.”
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