Who would profit most from Labour’s GST-exemption policy?
It won’t be those struggling with the cost of living – the average shopper is unlikely to see any real change in supermarket prices if Chris Hipkins was to implement his tax-off fresh and frozen fruit and vegetables.
The real winner would be the supermarket company duopoly who will pocket most of the GST exemption, along with supermarket lobbyists, the lawyers, accountants and public servants who would be in demand to administer and fight over the tax rules. Even if there is a trickle-down in reduced fruit and vege prices, economists say most of this will be disproportionately enjoyed by wealthier shoppers.


