Politics Live Blog
Miscalculation claim in Labour GST policy
National Party finance spokesperson Nicola Willis claims she has found a $250 million error in Labour's tax policy to scrap goods and service tax from fresh and frozen fruit and vegetables.
“Labour say their policy to remove GST from fruit and vegetables would take effect on 1 April 2023, but this is not reflected in their costing of this policy," she said.
“Labour has failed to account for the fiscal impact of removing GST in the 2023/24 fiscal year, and has only partially accounted for the cost of the policy in the 2024/25 fiscal year.
“If the policy is introduced when promised, there will be a three-month hit to the books in the 2023/24 fiscal year, which ends in June. This is not accounted for in Labour’s policy."