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.