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.
"Labour going all in on GST meddling sets up an election between parties with serious ideas to improve economic policy, and parties with vote buying gimmicks who are also the ones that got us into this mess."
In response, Hipkins said the policy benefitted "all New Zealanders" and would make a difference to those on low incomes.
Supermarkets the 'big winner' - Luxon
Speaking to reporters this afternoon, National leader Christopher Luxon said the "big winner" out of Labour's announcement was "supermarket owners, not New Zealand families".
"We're gonna cut out the middle man and give them tax relief directly into their bank account and we think the vast majority of Kiwis will be much better under National's tax plan than this one."
Labour leader Chris Hipkins had earlier said National presented "huge tax cuts for millionaires and CEOs" while Labour stood for "support for working families".
Luxon said he disagreed with that "strongly".
"We are very much for low- and middle-income workers in New Zealand. There's nothing in this package from [Labour] that's going help them.
"The vast majority of Kiwis will be much better off on our tax plan."
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