So, the end is nigh as the curtain falls on arguably the worst government in New Zealand’s history, certainly the worst in living memory, and yes I endured the Muldoon government. He didn’t lock us down, keep our kids from school, nor mandate people out of their livelihoods. He was a pussycat by comparison.
As the dusk descends, so the division and desperation rises exponentially within the Labour Party, their plight highlighted by the third successive poll at below 30 percent. The media-driven Jacinda hysteria is now well in the rear vision mirror.
Last week, Diktator Hipkins announced a GST-free policy on fresh fruit and veges. Well, Nicola Willis had announced it weeks ago, but it needed the kid from the hut (as in tree) to overrule all advice, including that of the tax working group, every economist in the land, and those in his own party. In selling the policy, he failed to mention it won’t make a noticeable difference to the exorbitant grocery shop due to . . .
the pricing vagaries of seasonal fresh fruit and veges, the workings of GST mean it is only paid on the profitable portion of the price — eg: 15 percent on 25 percent profit = 3.75 percent saving (not the 15 percent Chipkin claims).
However, it would greatly add administration costs, to both businesses and government, and noticeably reduce the government GST tax take. It is a spectacular political own goal.
