Why we should keep a no exemptions GST

The Telegraph reports:

George Osborne has been mocked by MPs over his “pasty tax” after it emerged people could avoid paying VAT on hot baked goods if they wait for them to cool in the shop.

These are the sort of stupidities you get when you don’t have a clean GST like we have in NZ. Labour’s pledge to exempt fresh fruit and vegetables was bad public policy, and will lead to situations like the above. For exampel frozen peas might have GST on them, but if you waited to thaw them, then would they be exempt?

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