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Food price inflation is running at the highest rate since 1987 – an increase of 12.5% from April 2022 to April 2023.
Is removing GST on food the solution?
A wealth tax, and removing GST from food are part of the demands of Te Pāti Māori president John Tamihere that would need to be met before the party will support a coalition government at the next election.
READ MORE:
* No GST on food, no monarchy, tax the rich: Te Pāti Māori’s demands for coalition
* ‘Not really any good news’ as food price inflation the fastest rate since 1987
* Cost of living blamed for 165% increase in foodbank demand
Australia levies GST only on some foods, including dairy products, spices, condiments, bread, fruit and vegetables, cereal, meat, and baby food.
But some argue ditching GST on food is a bad idea. University of Canterbury economics lecturer Stephen Hickson is in this camp.
Stuff
Should we ditch GST on food?
He says food costs won’t drop that much if GST is removed.
Hickson also argues there is no single clear goal for removing GST on food – sometimes it’s to encourage healthy eating or reduce obesity, sometimes it’s to help low income families afford better food, and the main reason given now is to ease the cost of living stress.
What do you think? Should the GST be dropped on food? Vote in the Yeah, Nah poll above.
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