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New Zealand GST-free fruit and vegetables

Government proposes zero-rating of fruit and vegetables if wins election

New Zealand’s Labour government has committed to zero-rating Goods and Services Tax on unprocessed fresh and frozen fruit and vegetables in the case that it wins the upcoming general election. The standard GST rate in New Zealand is 15%.

The tax cut is to help consumer manage high inflation rates – In June 2023, New Zealand inflation rose to 6%. Food was the largest contributor to the June 2023 annual inflation rate – up 12.3%. This was due to rising prices for vegetables; ready-to-eat food; and milk, cheese, and eggs.

Vegetable prices increased 23.3 percent in the 12 months to June 2023, while ready-to-eat food and milk, cheese, and eggs increased 9.8 percent and 13.8 percent, respectively.


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