14-08-2023, 09:54 AM
From this morning's Newsroom piece by Jonathan Milne on the F&V GST exemption:
"Already, the Restaurant Association says this policy will likely reduce the operational costs for hospitality businesses. “By eliminating GST from these essential food items, we anticipate a reduction of in the core cost of food for our member businesses," says chief executive Marisa Bidois.
Labour hasn't yet disclosed (or perhaps even considered) whether fruit and veges will be zero-rated all the way through from the farm to the fork, or just when they're finally sold to the consumer. It is likely the benefit to businesses is not in a reduction to their costs, per se, but an improvement to their cashflow."
I had thought about the second point but the hospitality industry wasn't a situation I had considered. I can see this getting messy and as onathan also states:
"Kids, if this is passed, sign up next year for law school – lawyers are gonna have a field day."
"Already, the Restaurant Association says this policy will likely reduce the operational costs for hospitality businesses. “By eliminating GST from these essential food items, we anticipate a reduction of in the core cost of food for our member businesses," says chief executive Marisa Bidois.
Labour hasn't yet disclosed (or perhaps even considered) whether fruit and veges will be zero-rated all the way through from the farm to the fork, or just when they're finally sold to the consumer. It is likely the benefit to businesses is not in a reduction to their costs, per se, but an improvement to their cashflow."
I had thought about the second point but the hospitality industry wasn't a situation I had considered. I can see this getting messy and as onathan also states:
"Kids, if this is passed, sign up next year for law school – lawyers are gonna have a field day."