Monday, September 27, 2010



Why we should remove GST from fresh fruit and veges

The Otago Daily Times summarises the empirical evidence on the effects of removing GST from fresh fruit and vegetables:

Professors Tony Blakely of the University of Otago, and Cliona Ni Mhuchu of the University of Auckland, gave the proposal cautious support as a move to improve health and reduce inequalities.

"Earlier this year we published research showing an 11 percent increase in purchasing of fruit and vegetables when 12.5% was taken off the price," Professor Ni Mhurchu said.

The finding was from a large randomised trial of 1,100 New Zealand shoppers, and published in the American Journal of Clinical Nutrition.

This increase equates to about half a kilo more fruits and vegetables per household each week, or about six extra servings.

That's a pretty significant effect. As for those who doubt whether its worthwhile, it is worth noting that we already run a 5+ a day programme to encourage healthier eating. This goes beyond mere advocacy to enabling. It would mean the government is putting its money where its mouth is.