Skyrocketing food prices signals need to slash GST

The shocking mark-up of food prices by retailers is another reason why GST should be removed from healthy food, says Rahui Katene who is sponsoring a bill that would slash 12.5 per cent, soon to be 15 per cent, from the healthy food docket.

"We've got some retailers charging 500 per cent more GST to customers than they are paying in GST to the growers.

"That might be good for IRD but it isn't for our families who are growing more and more concerned at the check out."

Food prices have risen more than 20 per cent in the last three years and increases for the staples of a nutritious diet – such as fruit, vegetables and milk have been particularly high.

Mrs Katene also called on retailers which were disposing of foods because they might be close to the use by date, to donate them to organisations which help people in need.

"It is disappointing to hear that so much food is being wasted in a time when we have people who can't afford to eat properly."

The Goods and Services Tax (Exemption of Healthy Food) Amendment Bill would remove GST from the following foods:
- Fruit and vegetables (including fresh, frozen, canned and dried):
- Breads and cereals (including all bread, grains, rice and pasta):
- Milk and milk products (including cheese, yoghurt and plain milk, but excluding ice cream, cream products, condensed and flavoured milk):
- Lean meat, poultry, seafood, eggs, nuts, seeds and legumes

ENDS

© Scoop Media