The Finance Minister says economists will have to get use to their latest pre-election pitch.
Prime Minister Chris Hipkins has today announced a boost to the In-Work Tax Credit, which will benefit about 160,000 families.
They'll also cut GST from fruit and veggies, to take effect as soon as April 2024.
Infometrics Principal Economist Brad Olsen has described the idea as pure politics, over economics.
Minister Grant Robertson says people who believe in the purity of the tax system will never like something that upsets it.
"It doesn't suit economists or tax experts, who see these things as models. When you get into real life, this will make a difference."
LISTEN ABOVE
- Hipkins reveals removal of GST from fruit and vegetables, Working for Families boost
- NZ Herald's Claire Trevett: Internal polling shows support for Labour removing GST from fruit and veg
- National's Nicola Willis: Let's face it, Labour's been leaking like a sieve
- Is removing GST from fruit and vegetables vote buying, or a smart policy?
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