One of Labour's big election promises is to take the 15 percent GST off fresh and frozen fruit and vegetables from April 2024, if re-elected. Here's what it would cover.

I think this is an excellent policy, and a long time coming. This is done overseas with good effect. While I don’t think it’s a magic bullet, it is definitely a step in the right direction.

  • @RangelusOP
    2•11 months ago

    I think we, as “lay-persons”, tend to only approach such issues from a single standpoint. I know I do, but I try to keep in mind that we do not see everything that goes into these decisions.

    If I had to guess, I suspect these are the reasons behind this policy:

    • Wanting to provide some cost relief, targeting food costs, but being unable to afford/unwilling politically to remove GST from all food.
    • Wanting to encourage improved diets, which will save money in the long run on healthcare.
    • Unwilling politically to ever raise tax, so adding a tax on sugary drinks is a non-starter.
    • Having to pick a policy which isn’t just a handout, as it can give a win to the right.
    • Having internal polls/data that this policy is popular amongst voters.
    • Adjusting tax brackets could be spun by opposition as “raising taxes”.

    I think Labour should be braver, but I understand they feel they are losing their chances of winning the election and thus are playing it safe.

    • @DaveMA
      1•11 months ago

      You make a lot of good points.

      I think Labour should be braver, but I understand they feel they are losing their chances of winning the election and thus are playing it safe.

      This is likely a big part. If they were clearly losing we would probably see more impactful policies. Since they have had two terms and know that’s about when parties get voted out, yet they are still neck and neck with a right wing coalition, their best chance of winning is likely to make small adjustments that should be universally popular to gain a small amount in the polls, rather than going all out and risking a big drop in popularity.

      • @RangelusOP
        3•11 months ago

        I agree completely with your assessment.

        My biggest complaint with NZ Politics is it seems people vote in the opposition just cause, rather than because they have good policies.