An economist says removing GST from fruit and vegetables can become very complicated in practice.

National claims it is part of Labour's election tax policy, but Prime Minister Chris Hipkins is refusing to either confirm or deny it.

Nicola Willis says she has been leaked the information.

ASB Senior Economist Mark Smith told Francesca Rudkin the extra administration to do this comes at a cost. 

He says ideally you would take a targeted approach, but that is hard to do.

Smith says other countries ask people show their income to get the discount, but it comes with problems.

LISTEN ABOVE

An economist says removing GST from fruit and vegetables can become very complicated in practice.
National claims it is part of Labour's election tax policy, but Prime Minister Chris Hipkins is refusing to either confirm or deny it.
Nicola Willis says she has been leaked the information.
ASB Senior Economist Mark Smith told Francesca Rudkin the extra administration to do this comes at a cost. 
He says ideally you would take a targeted approach, but that is hard to do.
Smith says other countries ask people show their income to get the discount, but it comes with problems.
LISTEN ABOVE

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.