Lost for words
19 Apr
The Herald has a story today saying that the Public Health Association wants the Government to make fruits and vegetables GST-free.
I’ve often questioned why it is so much cheaper for me to buy processed sugar/fat snacks than it is to buy vegetables, so I think this is a great idea. The question no doubt will be weather or not the government will recoup its costs down the track… with the theory being that a healthier population will need less healthcare.
I suspect that in reality the change would primarily make the goods cheaper for existing consumers rather than causing a massive market shift - a little over $2 off a $20 purchase isn’t exactly the deal of the century, and packaged snacks are still likely to be cheaper - but it would be a positive step and I’d like to see it happen.
2 Responses for "No GST from fruits and veges?"
The problem with this, is where do you draw the line? No GST on petrol? No GST on health products at the supermarket (Panadol etc)…
Well I guess the idea behind the fruit & veges suggestion is that it is supposed to encourage a habit change which would help to combat obesity and generally improve health.
Petrol and over-the-counter medication are kind of things that people need anyway; it’s not like there is a healthier alternative which people should be encouraged to use.
If the example instead was some tax relief on hybrid cars, then yeah, great idea!
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