Labour Leader David Cunliffe has announced he has "cleared the decks for new policies" by announcing a Labour-led Government would drop its previous proposals for exempting fruit and vegetables from GST and exempting the first NZ$5,000 of income from tax.
Cunliffe said dropping the exemption would free up NZ$1.5 billion for another policy "to help create opportunities for New Zealand families," which he would announce in his State of the Nation address in Auckland next Monday.
“As leader I have been reassessing how to give Kiwis the best bang for their hard-earned bucks," Cunliffe said.
“We will be removing the previously proposed $5000 tax-free zone and the GST exemption on fresh fruit and vegetables."
"This decision frees up around $1.5 billion per annum," he said.
“While these were worthwhile policies, we believe there are better ways to help struggling Kiwi families."
"Labour has a range of game-changing plans that will help New Zealanders who are being squeezed by the National Government’s lopsided and unfair policies," he said.
“I will be outlining Labour’s vision for a better, fairer, more innovative New Zealand in my State of the Nation address on Monday."
"This will include new policy that will help create opportunities for Kiwi families.”