GORDON LIGHTFOOT | Culture
In the wake of recent speculation regarding the removal of GST from fruit and vegetables, Prime Minister Chippy Hipkins has found himself in the midst of another controversy.
This time, it revolves around two of his favourite things: sausage rolls and Coke Zero. However, despite media inquiries, the Prime Minister remains tight-lipped about whether Labour has any plans to exempt these items from the Goods and Services Tax (GST).
The controversy arose after an alleged leak from within the Labour caucus suggested they were planning an election promise to remove GST on fruit and vegetables. While the Government wouldn’t comment, it has heightened public interest in tax policy.
The secrecy surrounding this issue has led to increased speculation, with many questioning the motivation behind such a proposal. Some argue that removing GST on these specific items could be seen as a populist measure, intended to appeal to voters who just love sausage rolls and coke zero.
Critics, on the other hand, point out that selective exemptions could lead to confusion and administrative challenges for businesses (particularly bakeries and dairies), as well as potential losses in tax revenue.
The Prime Minister’s office has stated that they will not comment on speculation or leaks, and any decisions regarding GST will be announced in due course. Meanwhile, National and Act have seized the opportunity to criticise the lack of clarity from the government and demand more straightforward answers from Prime Minister Hipkins.
More to come.
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