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So we want to consume more fruit and greens, that a lot we know. Is having GST off them the correct strategy? Modifying relative prices does appear to aid. We humans are programmed to seek out energy-dense meals. Meals processing has authorized for cheap, risk-free, hassle-free foodstuff, but this has come at the cost of improved energy density and dwindling micronutrients. In excess of the earlier few a long time these energy-dense meals have grow to be more affordable relative to nutritious meals. As a end result, price-aware buyers are likely to consume this kind of foodstuff. But it is a bogus economy, because our overall health technique finishes up finding up the invoice.
That is before we even commence to deal with the challenging boundary troubles. Labour’s prepare to consider GST off refreshing fruit and greens opens a Pandora’s box in that regard. At present we have a really simple technique of GST selection, which helps make our selection charge a single of the highest in the world. Whilst removing GST from fruit and veges is a pretty minimal alter, it would introduce border troubles into the technique. For instance, how will it deal with frozen, cooked or processed fruit and veges? Will growers be capable to assert expenses for growing fruit and greens that are to be employed for cooking or processing reasons? What if a salad on sale includes some cooked factors and some not?
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