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| Thread ID: 89333 | 2008-04-28 03:11:00 | Should NZ remove GST off food prices? | robbyp (2751) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 663225 | 2008-04-28 03:11:00 | I noticed both main parties have already 'told us' that they will not remove the GST off food prices. I personally only agree to removing GST off fresh fruit and veges, and other primary staples, such as unflavoured milk, bread, grains, basic cereals etc, as other things such as chocolate and soft drink are luxary items. Australia already does this, and as NZ often follows what OZ does and justfies law changes 'to bring us in line with OZ', I can't see why this can't be done. My only concern is that the Duopoly of supermarkets in NZ, will simply raise their prices anyway. | robbyp (2751) | ||
| 663226 | 2008-04-28 03:22:00 | Dumb idea. Would make the collection of GST far too complicated (a small industry would be required to administer it) and it will have a negligible effect on food prices anyway. Short term they would be cheaper, but prices would very quickly be back to where they are. Now, if they were serious, they would remove GST from fuel and replace RUC for diesel users with a fuel tax as per petrol... |
johcar (6283) | ||
| 663227 | 2008-04-28 03:25:00 | Other way round Robbyp, we had GST before Aussie . Lot of controversy about the removal of GST at the time . Seemed to be a strange way at first but they are handling it OK . People were quoting this at the time, from what I can remember . Raw chicken, no GST Cooked chicken, GST . Which led to the question - What about a live chicken?? To quote the Bard - "To GST or not to GST, that is the question . " Was funny at the time . Ken :lol: |
kenj (9738) | ||
| 663228 | 2008-04-28 03:30:00 | Dumb idea. Would make the collection of GST far too complicated (a small industry would be required to administer it) and it will have a negligible effect on food prices anyway. Short term they would be cheaper, but prices would very quickly be back to where they are. Now, if they were serious, they would remove GST from fuel and replace RUC for diesel users with a fuel tax as per petrol... Australia have managed to do it though, and they are a far larger country. Most other OECD countries also do not tax food. NZ is in fact one of only 3 countries that do tax food. You sound like you could be a politican. Nothing is too complicated, especially as there are only two main companies that sell food in NZ. It may be trival to those people who are not low income earners, but 12.5% saving on your food bill is a lot to someone who is on a low wage. Supermarkets have currently got petitions about this, hoping to get a non binding referendum on it. |
robbyp (2751) | ||
| 663229 | 2008-04-28 03:32:00 | Other way round Robbyp, we had GST before Aussie . Lot of controversy about the removal of GST at the time . Seemed to be a strange way at first but they are handling it OK . People were quoting this at the time, from what I can remember . Raw chicken, no GST Cooked chicken, GST . Which led to the question - What about a live chicken?? To quote the Bard - "To GST or not to GST, that is the question . " Was funny at the time . Ken :lol: Certainly there are grey areas, which is the same with a lot of things . |
robbyp (2751) | ||
| 663230 | 2008-04-28 04:07:00 | Australia have managed to do it though, and they are a far larger country. Most other OECD countries also do not tax food. NZ is in fact one of only 3 countries that do tax food. You sound like you could be a politican. Nothing is too complicated, especially as there are only two main companies that sell food in NZ. It may be trival to those people who are not low income earners, but 12.5% saving on your food bill is a lot to someone who is on a low wage. Supermarkets have currently got petitions about this, hoping to get a non binding referendum on it.Australia are bigger than us, correct. But per capita, we have far more bureaucrats already - changing the status quo as regards GST on food will not fix that. I am in IT - I am a firm believer in the K.I.S.S principle: Keep It Simple, Stupid. Removing GST from SOME food items is contrary to that principle. I assume you are talking about Foodstuffs and Progressive when talking about two main companies that sell food. This is close to the truth if you're talking about retail. But there are a stack of suppliers to these firms who also have to account for GST! Many of these are small ma-and-pa outfits who don't need added complications and compliance overheads. The 12.5% saving (not the actual savings amount, but I won't quibble here) would only be on non-processed food. Next time you go to the supermarket, check out how much food there is that ISN'T 'processed'. Then think how many people would choose to buy unprocessed, versus processed food because they might save a few cents. Most people buy food that is processed for the convenience aspect - so, as I said above, the savings would be negligible. But I guess as an IT contractor, changes to an already complicated system could potentially generate a bit of work for me!!! :D |
johcar (6283) | ||
| 663231 | 2008-04-28 04:36:00 | We've been through this already. Dumb idea, subsidising is the only way to go, gst makes too many loopholes. One across the board rule, and no exceptions, it's the way to go. | Thebananamonkey (7741) | ||
| 663232 | 2008-04-28 04:41:00 | My only concern is that the Duopoly of supermarkets in NZ, will simply raise their prices anyway. There's more competition over liquor pricing in supermarkets than fruit and veg. Haven't you noticed that at the same time growers are leaving fruit on the trees because they get so little for it the supermarkets cheerfully overcharge for it. |
PaulD (232) | ||
| 663233 | 2008-04-28 05:03:00 | Dumb idea. Would make the collection of GST far too complicated (a small industry would be required to administer it) and it will have a negligible effect on food prices anyway. Short term they would be cheaper, but prices would very quickly be back to where they are. Now, if they were serious, they would remove GST from fuel and replace RUC for diesel users with a fuel tax as per petrol... So tell me how removing GST from food is more complicated than we have now?....why will prices go back up?.....If GST is not payable on an item, IT is LESS complicated and their would be no reason for the price hike! |
SolMiester (139) | ||
| 663234 | 2008-04-28 05:04:00 | How is removing part of an excessive tax system a dumb idea?I dont know about you guys but i like keeping the money I earn. | rob_on_guitar (4196) | ||
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