15% GST on basic groceries is a grossly unjust tax on low income families. Food is not an optional purchase. We all need to eat. The effect of this tax on low income families is quite out of proportion to the impact on high income people. If this was translated into income tax there would be a public outcry. There needs to be one on this issue.
Families of equal size and ages need about the same amount of food. If a family spends $300 per week or $15,600 per year they pay $45 per week or $2340 per year in GST. This $2340 would be a great help to those struggling on $50,000 but is a more negligible amount to those on $150,000.
The governments of Canada, Australia, UK and others understand that people have to buy food and their groceries are exempt from GST. Why have successive New Zealand governments continued this imposition on low income families? It is not hard to work out how to do it. The other countries manage it. We like to think that we are at least as bright as the Australians.
This needs to be an election issue. The level of poverty in this country is a disgrace. This needs to be discussed with our MPs, candidates, the community and the many worthwhile organisations that are feeding those who cannot afford sufficient groceries for their families.
ROSEMARY MICHIE
Rotorua