November 13th, 2024

Māori Party urges support for GST removal on food to address cost of living crisis

The legislative effort aligns with Te Pāti Māori's broader objectives to address economic disparities and support the welfare of Maori and low-income communities throughout New Zealand.

In his plea for unity, Waititi criticised the current reliance on the taxed necessities of economically vulnerable populations to support the national tax system.
In his plea for unity, Waititi criticised the current reliance on the taxed necessities of economically vulnerable populations to support the national tax system.

In a significant move towards alleviating the cost of living crisis, Te Pāti Māori co-leader Rawiri Waititi has reached out to fellow MPs, urging bipartisan support for his legislative proposal to exempt all food from Goods and Services Tax (GST). The bill, championed by Waititi, is slated for its first parliamentary reading this Wednesday, as disclosed in a press release by the Maori Party.

What's happening: Emphasising the universal necessity of food, Waititi's appeal to political leaders cuts across ideological lines, highlighting the pressing need to address the disproportionate tax burden on lower-income families. "Food is a right and a necessity that shouldn’t be taxed. We know that GST hits lower income whānau the hardest," Waititi stated, encapsulating the core argument of his initiative.

  • Why it matters: The proposed removal of GST from food items comes as a direct response to the ongoing cost of living challenges faced by many New Zealanders. By eliminating this tax, the bill seeks to provide immediate financial relief to families struggling to afford basic necessities, thereby underscoring the government's role in ensuring the welfare of its citizens.

Driving the news: In his plea for unity, Waititi criticised the current reliance on the taxed necessities of economically vulnerable populations to support the national tax system. "We should not be relying on people who are struggling to feed their tamariki to prop up our tax system," he asserted, calling for an end to what he views as an unjust fiscal policy.

  • Between the lines: The push for this legislative change also serves as a critique of the coalition government's handling of the cost of living crisis, with Waititi suggesting that supporting his bill would enable the government to make a significant, positive impact on the lives of many. "The coalition said they’d do something to address the cost of living. This bill is an opportunity for them to have a positive impact after a terrible start to their governing term," Waititi explained.

The bottom line: Waititi's letter to party leaders is a clarion call for political solidarity on a fundamental issue affecting the livelihoods of New Zealanders. By removing GST from food, the proposed bill presents an actionable step towards mitigating the financial strain on low-income families, fostering a more equitable society.