Another GST hike will kill us
Last year, the National Government increased GST from 12.5% to 15% and now there is talk of its increase to 17.5%. Indian Newslink readers would remember that that the Party’s Leader John Key had made an election promise (in 2008) that ‘The GST rate would never be lifted.’
Price rises in the last quarter of 2010 were the highest in 22 years, because of the hike in GST.
It is not surprising that food banks have experienced a huge increase in clientele, not just from low-income earners, but middle class as well.
It is a well-known fact that families (particularly migrant and refugee families) are finding it more difficult to makes ends meet and the hefty tax break of $14 billon given to the wealthiest New Zealanders has not helped common people.
The National Government has had to borrow to pay for that policy, while many middle and low-income earners are feeling the financial squeeze as they face skyrocketing grocery bills, rising petrol and power prices as a result.
In order to pay off this debt, National is also set to sell off valuable state assets and slash spending on essential services, like hospitals and schools.
On the other hand, Labour wants to make sure that middle and low income Kiwis are not forgotten as they have been under the National Government.
Labour’s priority is to help those who are struggling to pay their bills, to create jobs and to grow the economy for the benefit of all New Zealanders.
Labour has already released some key policy ideas including plans to create a fairer tax system that cracks down on dodgers, while giving all New Zealanders financial relief through a tax-free zone.
Labour’s plan is to make the first $5000 of your income tax-free, which means you would not pay tax on the first $100 a week you earn.
Labour will axe the GST on fresh fruit and vegetables, not just National’s 20-cent increase but the entire 15%.
Studies show the best way to get people to eat healthy food is to cut its cost.
With one in four children already over-weight at age five, healthy food will help to cut costs in our health system.
New figures showing more than 67,000 New Zealanders are out of work and relying on unemployment benefit to survive proves that the Government has no plan to create jobs or to grow our economy.
The promises Mr Key keeps making about job creation and getting New Zealanders off benefits are now ringing very hollow.
After more than two years in power, he is failing abysmally.
In Australia, 1000 new jobs were created each day last year, compared to 67,084 people on an unemployment benefit (an increase of 4536 over the December figures) in New Zealand.
Mr Key told the country that the economy would emerge out of recession aggressively. That has not happened.
Labour ran Budget surpluses and reduced net Government debt to zero.
In comparison, National has mismanaged the economy and is now crying poor in an attempt to convince New Zealanders it has to sell off valuable assets and make brutal spending cuts.
It is showing its true colours.
Your vote will count as General Election is held on November 26.
Dr Ashraf Choudhary is Member of Parliament on Labour List and the Party’s Spokesperson for Food Safety and Associate Spokesperson for Ethnic Affairs and Research, Science & Technology. The above article is exclusive to Indian Newslink ©