Complicating GST

Labour leader Phil Goff reckons removing GST is simple.

He says it will be taken off a lettuce, it will also be taken off a salad at the supermarket and the mayonnaise that is packed with it but it won’t be taken off either if they’re in a hamburger.

This raises several questions:

* What about if the salad is served on a plate rather than in a bun? Will it make a difference if it is dressed or undressed?

* If not, does this mean that salad is only healthy when bought from a retailer or wholesaler but not at a cafe, restaurant or bar? Does it also mean that mayonnaise is healthy when sold with a pre-packaged salad but not when bought separately?

* If making healthy food cheaper is the aim, why stop at fresh fruit and vegetables? Frozen and canned produce can be just as nutritious, sometimes more so, than fresh.

* If taking GST off fresh fruit and vegetables will really make a difference, why not make a bigger difference by exempting other healthy food like meat, milk, bread, rice and a whole lot of other basic foods which are also necessary in a healthy diet,?

* What is the sense of taking a few cents off basic food items like carrots and  much more, maybe even a few dollars, off luxury food like out of season strawberries or pomegranates?

* Is it really worth complicating the GST system which the rest of the world admires for its simplicity for a policy which will do little if anything to improve the health of the poor?

3 Responses to Complicating GST

  1. Andrei says:

    My goodness this will cost more to administer without delivering a single benefit that I can think of.

    We all know that if it does succeed in making people eat more greens the laws of supply and demand being inexorable will mean that greens will rise in price to accommodate the increased desirability of said leafy comestibles.


  2. jabba says:

    Phil has said many times that it’s simple .. common sense indeed BUT hates answering questions regarding examples.
    anyway, only organic veggies are good for you


  3. jabba says:

    anyway, John Key has reduced the price on fresh fruit and veggies big time over the past few weeks


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