Fuel tax to increase healthy food prices

Horticulture New Zealand chief executive Mike Chapman says the tax comes into force in Auckland on Sunday without an exemption system for off-road ‘behind the farm gate’ vehicles and machinery. Chapman says 441 fruit and vegetable growers in Auckland will be affected. 

"Growers should not have to pay the RFT for vehicles and machinery that are supposed to be excluded from this tax, yet on Sunday they will have to. We are talking about considerable numbers of vehicles and machinery used to produce healthy food for New Zealanders, both in Auckland and beyond,” Chapman says.

He says growers will have to go through a complicated and costly process to get a rebate on tax paid as there is currently no exemption process.

Chapman says the process was rushed to meet Auckland Mayor Phil Goff’s announced 1 July deadline, and as such those in horticulture industry were not listened to. He says the tax will affect growers’ businesses and costs considerably, to the point of hundreds of thousands of dollars a year. He adds these costs will be passed onto the consumer, resulting in more expensive healthy food.