Like any interesting subject, providing a tax subsidy on fruit and vegetables is far from being black and white. The more research I have undertaken on the subject the more points of view I have discovered and the less certain I have become of my own opinion. At face value at least, making healthy food more financially accessible to New Zealanders has obvious benefits. The less wealthy members of society for example, who are more affected by poor health associated with poor diet, would presumably benefit. As Donna Wynd argues in her article "Why taking GST off fresh food won't help the poor, improve their health or make them slim" however, the influence that the price of food has on the eating habits of low income households is comparatively small.
Eating habits, Wynd (2010) states, are "a complex mix of learned behaviour, education, food preparation and cooking skills, cultural expectations, food availability and affordability, income, expectations, and personal preferences." In other words, it is impossible to point to one aspect of our society, i.e the price of fruit and veg, and say, 'here is the problem, fix that and we will be slim and healthy in no time!' Real life, unfortunately, is seldom so simple. In Wynd's opinion the main factor of the prevalence of unhealthy diets in low income households has more to do with income equality. She argues that until this issue is confronted "then we might as well collect the GST off fruit and vegetables and use it for something socially useful." The point Wynd makes is that a subsidy on fruit and vegetables could be seen as a way of avoiding the much larger issues of income inequality and poverty in our society.
So, as Wynd argues, there seems to be no silver bullet cure for our poor diet but should we totally write off a fruit and vegetable subsidy? Veerman and Cobiac (2013) think not. In an article published in the Medical Journal of Australia they postulate that removing the GST exemption on fresh fruit and vegetables in Australia, effectively raising their price by 10%, "could have a large detrimental impact on health and health care budgets." In fact, using models based on scientific evidence they estimate that "the extra disease burden could add a billion dollars in health care costs" over the life time of the 2003 Australian adult population. In their research Veerman and Cobiac have touched on a very important part of the argument - the direct correlation between a healthy diet and disease prevention. They argue that a subsidy on fruit and vegetables not only saves lives, but saves money in medical costs as well.
This assignment has been very interesting. I have enjoyed thinking deeply about a particular topic, especially one which is so relevant in today's society. Although my opinion has been broadened now and I better understand why people don't agree with the proposed tax subsidy on fruit and vegetables, I do believe that if it was introduced society would benefit. What's your opinion?
Wynd D. (2010) Why taking GST off food won't help the poor, improve their health, or make them slim. Retrieved from http://www.policyprogress.org.nz/2010/12/why-taking-gst-off-fresh-food-won%E2%80%99t-help/
1 comment:
You highlighted an interesting study by Veerman and Cobiac regarding the impact of removing a GST exemption on fruit and vegetables. I think this study demonstrates the important role of economics in this debate. On a side note, I hadn't previously considered cooking skills a factor in fruit and vegetable buying habits but it makes sense.
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