New Zealand's Labour Party, led by Chris Hipkins, has announced a package aimed at alleviating the cost of living. The package includes removing the
New Zealand’s Labour Party, led by Chris Hipkins, has announced a package aimed at alleviating the cost of living. The package includes removing the 15% Goods and Service Tax (GST) from fresh and frozen fruit and vegetables starting from April 2024. Additionally, the party plans to increase the In-Work Tax Credit by $25 to $97.50 per week from April 2024, benefiting low and medium-income working families. The Working for Families abatement threshold will also be raised by more than $5000 to $50,000 from April 1st, 2026. While this plan has been criticized by economists, Hipkins argues that GST removal is feasible due to electronic transactions. The new Grocery Commissioner will ensure savings are passed on from supermarkets to consumers. National Party leader Christopher Luxon expressed skepticism, stating that retailers, not consumers, will benefit. Labour’s broader tax plan includes no changes to income tax levels or thresholds, and no wealth or capital gains tax.
