19 Jul 2010

More debate over removing GST from "healthy" food

6:07 am on 19 July 2010

One of the members of the Tax Working Group says removing the Goods and Services Tax from "healthy" foods is not the best way to go about it.

A Maori Party Members' Bill is seeking to exempt foods such as fruit, vegetables, bread and lean meat from GST.

PricewaterhouseCoopers chairman John Shewan says there's no evidence that Americans or Australians are fitter than New Zealander's because they don't pay GST on "healthy" foods.

He says removing GST from "healthy" food is not the best way to encourage added consumption of the food.

He says the Tax Working Group discovered that the biggest winners when you remove GST from "healthy" food are wealthy people because they tend to spend more on "healthy" food.