The news has now been confirmed. Labour has announced that if re-elected it will take GST off fresh fruit and vegetables. It will also increase working for families for about 160,000 families.
From Radio New Zealand:
Labour has confirmed its worst kept election promise – take GST off fresh and frozen fruit and vegetables.
It has also revealed it will increase Working for Families for about 160,000 families.
Leader Chris Hipkins has unveiled the package as part of Labour’s “10 point” plan to help New Zealanders with the cost of living, with two more left to announce through the campaign.
There would be no tax cuts or any wealth or capital gains tax under a Labour government, he reiterated, after ruling that out last month.
The 15 percent Goods and Service Tax would be removed from fruit and vegetables from next April, estimated to save households about $4.25 a week, based on an average spend of $32.50.
…
Labour would also boost the In-Work Tax Credit by $25 to $97.50 a week from April 2024, which social development spokesperson Carmel Sepuloni said would “deliver targeted meaningful cost of living support to around 160,000 low and medium-income working families”.
“We will also lift the Working for Families abatement threshold by more than $5000 to $50,000 from April 1st 2026, to ensure working families keep more when their pay increases or they pick up extra hours,” she said.
She said half of those getting Working for Families earned more than $40,000, and “with record wage growth fewer Kiwis have received Working for Families tax credits as their incomes have grown”.
“The combined impact of the $25 increases to the In-Work Tax Credit and lifting the abatement rate will see 175,000 households gaining $47 per week on average during the next term of government.”
Time will tell if the policies are popular. As is clear from the figures the working for families adjustment will deliver considerably more for poorer families than the GST figures will.
No doubt some on the left will criticise the announcement for not going far enough.
But if there is a change in Government it is clear that none of this will happen.
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