Labour's GST policy - readers react

Labour leader Phil Goff has announced the party will axe GST on fresh fruit and vegetables if elected. Photos / Hawke's Bay Today, Steven McNicholl

Labour's announcement that it plans to axe GST on fresh fruit and vegetables if voted into power has sparked heated debate on nzherald.co.nz's Facebook page.

Some readers supported the idea but questioned why Labour didn't put the policy in place the last time they were in power, with Mark Betty asking "Why didn't they do that 2 years ago when they had the chance? It's not a new idea. They rubbished it then."

Others thought it was merely a cynical ploy to get votes.

"Labour will say anything to get elected, gee how much did we lose on KiwiRail?" asked Dana Morris, while Rory Sweeney said "Yet another bandwagon the Goffinator has jumped on. If only he had the nation's best interests at heart."

Others thought the policy should be extended to include other "healthy" foods such as milk and bread.

"There should be no gst also on bread, butter, milk, cheese - the staple diet of all kiwis," said Joy Raynor.

While some supported this move, others such as Sophia Sturgess pointed out that many families have allergies and can't eat regular milk or bread. "Maybe stick to vege and fruit to save complication on milk/bread issues?"

Some readers thought retailers would profit from the move, keeping prices the same but taking the difference for themselves.

"Do you really think supermarkets will reduce their prices though?" asked Beth Houlbrooke. I thought it was supply & demand - charge whatever the customer is willing to pay. So if pears are $3.99 a kilo now, they'll still be $3.99 a kilo with the removal of GST and the vendor can pocket the difference."

Others thought removing GST from fruit and veges would be too complicated to work.

"Good idea, make the tax system even more complicated," said Elizabeth Dawe, while Jebs O'Rourke asked "Has anyone stopped to consider the cost in bureaucracy in administering no GST on fruit and vege? It would be cheaper just to give everyone a tax cut."

Monique Zwart, however, reckoned "Saying it is too complicated to implement is a load of rubbish. Australia have always had fruit and veges free of GST. If the Aussies can do it, it can't be that complicated!"

- NZ Herald staff