Fears increasing GST would hurt those on low incomes

There appears to be overwhelming opposition to Prime Minister John Key's plan to raise GST to 15%, judging by the results of an Otago Daily Times teletopics poll.

By late yesterday afternoon, 46 readers had responded - with 43 opposed to Mr Key's tax plan, two supporting it and one conditionally so.

Their comments followed a speech by Mr Key on Tuesday, in which he outlined plans for up to $4 billion in across-the-board tax cuts - of particular benefit to middle and high-income earners - to be paid for by increasing GST from 12.5% to 15%.

Social welfare benefits, superannuation and Working for Families payments would also be raised, he said.

Many worried increasing GST would have a disproportionate impact on those least able to afford an increase in the cost of living - pensioners, beneficiaries on fixed incomes and the poor.

Carol Morgan, of Dunedin, said increasing GST was "essentially the opposite of Robin Hood".

"It's taking from the poor and giving more to the rich.

"There must be other ways to help many people in New Zealand who are already struggling."

Alan Goding, of Dunedin, said he was "vehemently opposed" to lifting GST, wondering where the increase would lead.

"Soon it will be 20%, 25%, 30%, and you don't get compensated by any piddly tax relief," he said.

Bob Warren, of Dunedin - the New Zealand Democrats for Social Credit southern region chairman - said GST was the "most iniquitous tax that can ever be imposed on people".

Roger Grauwmeijer said if personal tax rates were cut, he would support an increase in GST "if and only if" the tax was removed from basic food items.

Graeme Reynolds said large families and the elderly would be worse off if GST was increased, while Ron and Jill Maher said the increase would be an "insult" to low-paid workers, who recently received a 25c increase in the minimum wage, to $12.75 an hour.

- chris.morris@odt.co.nz