Axe GST on basic food groups & taxes on taxes

4 May 2008.

As part of its policy package being announced at conference on 17th May in Mangere, Family Party leader Richard Lewis says the party will outline details of its policy to remove GST on basic (primary staple) food groups, infant and elderly necessities, household energy, rates, and off the excise duty on fuel.

"The tsunami of rising household costs is hurting families badly. Those who suffer most are children and the elderly. Axing GST on basic food groups and particularly where the Government has mounted taxes on top of taxes, will give much needed relief to families that will have immediate and long term benefits," says Mr Lewis.

The idea of removing GST on basic food groups has been rejected by the major parties because of alleged complexities it poses the tax system.

"Short term pain felt by Parliament's bean counters to think through and implement such a policy is significantly outweighed by the benefits for New Zealand families, our children and our elderly. For too long Government has put Parliaments interests ahead of New Zealand families, which is why so many New Zealanders are packing their bags and heading to more family-friendly shores like Australia," said Mr Lewis.

He says New Zealand has the advantage of looking to Australia and other countries that have implemented the policy to learn from their experiences.

"Our Government has a habit of taxing anything that moves with no discernible benefit to households. Their approach of mounting taxes on top of taxes is inherently unfair. Government needs to tighten its own belt and put families first," he added.

More details will be released at the Family Party conference in Mangere on Saturday 17th May 2008.

ENDS

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