Don Brash on why taking GST off fruit and vegetables is a bad idea

This week on Taxpayer Talk, Taxpayers' Union Executive Director, Jordan Williams, sits down with Dr Don Brash to discuss Labour’s proposal to remove GST from fruit and vegetables.

Dr Brash chaired the advisory committee that designed New Zealand’s GST system back in 1985 and has a strong understanding of what makes a simple, efficient tax system. Don has also been Governor of the Reserve Bank of New Zealand, the leader of both the National and ACT parties, and is currently the spokesperson for Hobson’s Pledge.

New Zealand’s GST system is widely accepted by economists as the best in the world, however many politicians over the years have campaigned to break it by creating exemptions. Creating exemptions polls well in focus groups but, as Don explains, the reality is that these exemptions create extra cost and complexity for very little gain. 

Later in the podcast, the pair discuss solutions for New Zealand’s productivity crisis and what we should be doing to catch up with Australia. 

To support Taxpayer Talk, click here