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Taxpayers’ Union Calls Hipkins’ GST Bluff – Releases The Modelling And Challenges Hipkins To Do The Same

Following recent concerns raised by the Taxpayers’ Union that Labour’s GST-exempt policy would leave a revenue hole of up to $411m because, as Labour have claimed, more people may eat fresh fruit and vegetables if they were cheaper, yesterday Chris Hipkins told media “We’ve already banked the savings that people make. So when people get their GST off their fruit and vegetables, we’ve assumed that 100% of the savings they get from that are going to be spent on more fruit and vegetables.

“If they spend that on something else then actually, our costings are overly conservative because they’ll pay GST on the other stuff. The Taxpayers’ Union beat-up is just fictional. It doesn’t make sense. They haven’t actually got their numbers right.”

To call the Labour Leader’s bluff, the Taxpayers’ Union is releasing the excel spreadsheet and is inviting journalists and analysts to come to their own conclusion on Hipkins’ version of ‘fiction’. The spreadsheet is available to download at

Taxpayers' Union Executive Director, Jordan Williams says:

“It’s certainly a big coincidence that Labour’s numbers match, almost exactly, our figures before we adjust them for behavioural changes. After this behavioural adjustment, Labour is left with a $411 million hole which they are yet to explain.

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“Now that we’ve done so, Mr Hipkins and Robertson should release their spreadsheet showing how they came to the same number, but – as Hipkins claims – accounting for the substitution effect on demand for fresh fruit and vegetables from his GST-free policy.

“Either it’s an almighty coincidence, the Labour Party leader is being misled by his advisors, or Mr Hipkins is misleading voters. We are pretty confident it’s not the first one.

“It’s time for Mr Hipkins to put his money where his mouth is and release Labour’s own costings.”

© Scoop Media

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