Take GST off food

BY DENISE PIPER

Whangarei residents want a new approach to GST on food.

Prime Minister John Key says the government is carefully considering increasing GST from 12.5 percent to 15 percent this year, to discourage spending and encourage saving.

The tax rise is to be off-set by cuts in income tax.

But Kiwi households are already being hammered in the pocket with food prices up 12 percent in the past two years.

Statistics New Zealand says food prices increased 2.1 percent in the month of January alone, with higher prices for grocery food, fruit and vegetables, and meat, poultry and fish.

Maori Party finance spokeswoman Rahui Katene has put forward a private members bill calling for healthy food to be exempt from GST.

When asked by the Whangarei Leader if they supported GST being taken off food, most people on Whangarei’s streets agreed.

Barbara Holdem would like to see GST taken off food because it’s a necessity.

"It would help people who are struggling at the moment to still be able to feed their family."

But she stresses alcohol and cigarettes, although available at the supermarket, should not be exempt.

Wally Ogle also wants GST off food.

"Everything’s going up but wages have never gone up," he says.

"I think they should take it off food, especially for low income earners – which would be 80 percent of the country."

Kylie Nicholl suggests if taking all the GST off food is too expensive, the government could have a lower rate of about 10 percent.

"I think they should subsidise it off food. It’s hard enough for families as it is."

Loren Meerendonk also says it would be good if GST was taken off food or lowered. "I don’t want GST to go up," she says.

Lucy Davidson says healthy food should be exempt from GST.

"We shouldn’t be taxing something that we have to have, but junk food should be taxed because it’s bad.

"Vegetables should be exempt. They’re going on about five plus a day but trying to budget as students it’s way too expensive to buy veggies."

Toni Love agrees GST should be taken off food.

"It’s a basic human necessity," she says.

"Organic food should be cheaper – it’s way too expensive."

Dion Gray says healthy food should be subsidised.

"I think if they tax junk food and not the other stuff it would be good."

But Anita Pilkington is not so sure about taking GST off food because the tax has to come from somewhere.

"I’m not sure – if it’s not on food they will put higher taxes on other areas."

- © Fairfax NZ News