From Napier MP Chris Tremain’s Facebook page:
I went fresh vegetable shopping over the weekend to compare prices. Here at a market garden I purchased a pumpkin for $3, a head of broccoli for $1.79, and a cabbage for $1.69. Just down the road at the supermarket the same vegetables were over $6, $3.49, and $3.99 respectively. On one day and without seasonal variation over 100% difference in the price. So consumers have a choice to buy cheap fresh vegetables now, 100% cheaper. Do you really think removing GST from these products will make a difference?
All sorts of things impact on the price of fresh fruit and vegetables.
Taking GST off fresh produce won’t necessarily reduce the price by 15%. Seasonal availability, weather and how much of a mark-up retailers choose to charge could just as easily increase the price by that amount or more.