Labour’s new GST policy step in right direction

Tax Justice media release
27 September 2010

“Labour is taking a step in the right direction if they're going to campaign for the removal of GST from fresh fruit and vegetables,” says Vaughan Gunson, Tax Justice campaign coordinator.

“The fact that Labour is re-thinking its GST policy, after previously rejecting any changes to GST prior to the 2008 General Election, is testimony to how strongly grassroots people feel about this issue,” says Gunson. “The weight of public opinion can't be ignored.”

“For most Kiwis it’s immoral that food should be made more expensive by a tax,” says Gunson. “Especially at a time when food prices are going through roof and people are really struggling.”

“So Labour’s announcement is welcomed, because it puts another dent in the sanctity of GST, which proponents of this regressive tax have tried so hard to maintain,” says Gunson.

“The Tax Justice campaign, launched in May this year, will continue to fight for the removal off GST from food,” says Gunson. “And to ensure enough government revenue for public services we’re advocating that financial speculation be taxed instead. This hugely damaging economic activity is currently untaxed, which is a gross injustice.”

The focus of the Tax Justice campaign is a petition calling on parliament to: 1) Remove GST from food; and 2) Tax financial speculation.

“Taking GST off food would deliver a bigger tax cut than most of us will be getting from the National government on 1st October,” says Gunson.

“Thanks to National’s GST increase, a family spending $200 a week on food after 1st October will be paying GST of $26.09,” says Gunson. “Take the GST off and you’ve got a substantial tax cut, which would offer some relief at the supermarket for many New Zealanders,” says Gunson.

To protest the GST increase, Tax Justice supporters will be collecting signatures around the country on Friday 1st October and Saturday 2nd October.

“We expect to get a very positive response,” says Gunson. “And we’d welcome Labour Party members giving us a hand.”

Over 12,000 signatures have been collected for the Tax Justice petition. Over 2,600 people like the ‘No GST on food’ Facebook page.

See also these recent media releases:


John Key's other New Zealand flag: "The Land of 15% GST" (23 September).

Tax cuts will be wiped out by food price bubble (26 September 2010).

For more information on the campaign go to www.nogstonfood.org