FED: Democrats prepared to negotiate on GST on food

AAP General News (Australia)
12-02-1998
FED: Democrats prepared to negotiate on GST on food

CANBERRA, Dec 2 AAP - The Australian Democrats said today they were prepared to accept a
GST on some food.

As the government prepared to press its tax package through the Lower House today,
Democrats tax spokesman Senator Andrew Murray said there was room to negotiate around the
Democrats bottom line of no GST applying to food.

"Within food there is negotiations. Should it be zero rated or exempted; where the
definition of food should end; whether it should be basic food or very widely defined
- theres a lot to discuss on it," Senator Murray told journalists.

"Ive got an open mind on that one. I think it (the exclusion food from the GST) should be
very wide."

Democrats deputy leader Natasha Stott-Despoja said the Democrats were prepared to allow a
GST on takeaway food.

"We went to the election with a clear position we would exempt food, basic necessities of
life and we would probably see a GST applied to takeaway and junk food," Senator Stott Despoja
said.

She described the government strategy of rushing 16 tax bills through the Lower House -
even though the Senate wont consider them until April - as showing off.

"Its just a display of their feathers. I think its a display of what they can do because
theyve got the numbers and therefore they can ram it through," she said.

"Its certainly not a symbol of democracy or good legislative practices. I think its just
showing off, really."

AAP rmg/cjh

KEYWORD: TAX DEMOCRATS (CARRIED EARLIER)

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