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Why Your Grocery Bill Is About So SKYROCKET In Cost

The price of fruit and veggies is set to soar if a controversial new proposal to increase the tax on backpackers is approved.

The federal government is calling for a 32.5 per cent tax rate for tourists who come to Australia on working holiday visas. Growers say it will deter backpackers from seasonal picking which will prompt prices to rise.

They say just exactly how much prices will soar will be dependant on how much unpicked produce is left rotting, with farmers already witnessing a decline in labour inquiries. 

Fruit Growers Tasmania says tourism and agriculture won't be the only one's suffering, which consumers expected to be hit hard.

'How long is a piece of string - it will be very hard to predict,' Phil Pyke told AAP. 

He says farmers are terrified at the prospect. The National Farmers' Federation and the Tasmanian producers and industry representatives have rallied together to warn the government. 

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