The Labour Party is calling for GST on fruit and vegetables to be scrapped to encourage healthy eating.
GST will rise from 12.5 to 15 per cent for all goods and services on October 1st as sweeping income tax cuts kick in.
Labour Finance spokesperson David Cunliffe says axing GST would be a major boost for fruit and vege growers.
“This is good news for New Zealand producers of fruit and vegetables for the domestic market, we’ll certainly see a big lift in domestic consumption.
"We’re looking at 10 per cent at least, possibly more if people switch more of their purchases into healthy fruit and vegetables.
"There is an argument when you start fiddling with GST that you don’t want a million exemptions, because you’d need half a million public servants to administer it."
Mr Cunliffe says there would be no problem deciding which foods would be exempted
"We’ve got around that with something very, very simple and clean - what is a fruit, what is a vegetable?
It’s clear enough, I think even the National Party ministers should be able to work that one out.”
Mr Cunliffe says the $250-270m loss from the GST cut would be easily affordable, with the increase in tobacco tax making up for the loss.
