The ACT Party says Labour's policy to remove GST from fruit and vegetables "will help wealthier households three times more than it will lower income households".
Labour announced the election promise – which is a Labour Party policy, not a Government announcement – in Lower Hutt today.
Referencing one of Labour leader Chris Hipkins' comments in the announcement, ACT leader David Seymour said in criticising income tax cuts, Hipkins had "taken down his own GST policy with a huge own goal”.
“Hipkins said today of income tax cuts: 'If I’m going to target support, I’d rather give it to mums and dads than to millionaires.’
“But his own policy launched today will do just that.
“Removing GST from fruit and vegetables will help wealthier households three times more than it will lower income households."
Seymour said that showed the policy was "an act of desperation from a visionless, poll-driven party".
"Labour is out of ideas, out of Ministers, and out of money."
Seymour also took aim at Labour finance spokesman Grant Robertson's former criticism of the policy.
Robertson had previously called the idea of taking GST off particular food types a "boondoggle" – a pointless and unnecessary exercise.
Seymour said Labour knew the policy didn't work.
"Labour, the Greens, and the Māori Party would destroy the tax system, the economy, and drive away anyone with ambition.
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