Radio New Zealand - Te Reo Irirangi o Aotearoa

GST removal only if it makes food cheaper - Labour

Updated at 3:09 pm on 12 May 2010

The Labour Party has signalled it would only remove the tax on fresh fruit and vegetables if it was sure it would actually make food cheaper.

Its leader Phil Goff has told a meeting in Nelson that removing GST on fresh fruit and vegetables would be positive for health reasons and could also ease the pressure on family budgets.

While Labour is considering the idea, Mr Goff says, it won't adopt it as policy if it turns out it would create more red tape than it's worth.

He says Labour will have to be convinced removing GST on fresh fruit and vegetables would actually make food cheaper.

Mr Goff criticised the Government's plans to cut the top rate of tax from 38%, saying Labour's tax policy will be aimed more specifically at cutting rates for middle- and low-income earners.

He says the party would also change monetary policy and is still considering the idea of making KiwiSaver compulsory.

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