Government MPs will travel around the country explaining the
October 1 tax cuts as the deadline approaches, Prime Minister
John Key says.
An increase in GST from 12.5% to 15% comes in at the same
time, and Labour and National have been arguing since the May
budget about whether people will be better or worse off.
"Some politicians have been trying to convince New Zealanders
that the October 1 tax cuts will leave most individuals and
families worse off once the increase in GST and other cost of
living adjustments are taken into account," Mr Key said at
his post-cabinet press conference.
"Today I can tell you that the Minister of Finance has
received advice from the Treasury that shows these claims are
demonstrably wrong and he will have more to say about that
this week."
Mr Key said a family on the average income of $76,000 a year
would be about $25 a week better off, even after the GST
increase was factored in.
"Over the next fortnight, Government MPs will be out and
about communicating the effects of the tax changes and you
will hear more about that from us as October 1 approaches,"
he said.
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