FED: No investigation of health impact of GST on food

AAP General News (Australia)
02-02-1999
FED: No investigation of health impact of GST on food

Federal Health Department officials have told a Senate inquiry they have not investigated
how the proposed GST will affect the health of Australians.

The federal government is resisting calls for food to be exempted from the GST, arguing
that its compensation package will cover the extra costs arising from the introduction of a 10
per cent GST.

The new regulations will reduce tax on processed food and impose tax on fresh foods.

But dietitians are worried it will discourage people, particularly those on low incomes,
from eating whole foods.

Facing questions from Senators, Health Department first assistant secretary LYNELLE BRIGGS
has told the Senate Community References Committee tax inquiry the department is conscious of
promoting better health.

But she says it has not examined the impact on health of taxing fresh food, and has no
intention of undertaking such research.

The hearing is continuing.

AAP RTV kaw/mfh/lm/jn

KEYWORD: TAX HEALTH (CANBERRA)

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