Media release:

Labour Backdown on GST a Betrayal Of Low-Income Families

The Labour Party’s signal it will drop its promise to cut GST on fresh fruit and vegetables is a betrayal of low and middle income earners.

This was almost the only mildly progressive policy Labour took into the last election but Party Leader David Shearer now says the country can’t afford it.

“It’s hard to think of a more week-kneed, pathetic announcement” says Mana Economic Justice spokesperson John Minto. “Just a percent or so more tax on the super-rich would enable Labour to keep this policy and ease the burden on the poor”.

The 200 or so super-rich New Zealanders take away billions in unearned, untaxed wealth each year but Shearer says the poor must continue to suffer.

GST is a heavy tax on the poor. The lowest 10% of income earners in New Zealand spend 14% of their income on GST while the wealthiest 10% spent less than 5% on GST.

Shearer should be announcing a policy to scrap this medieval GST altogether and replace it with a financial transactions tax.

It’s time the heavy tax burden on low-income New Zealanders was shifted to the high income earners who pay almost no tax.

ENDS

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