An email poll of key Auckland retailers reveals that 82 percent of respondents believe the timing of the Government's GST increase is "bad".
The Government announced in the budget today that GST would rise from 12.5 percent to 15 percent from October 1.
The survey of more than 400 Newmarket retailers was conducted by the Newmarket Business Association yesterday and today.
"Given the very challenging retail environment of the past two years, the timing of the GST increase is viewed by most retailers as poor," said association chief executive Cameron Brewer.
"Retailers have been knocked around for many months, and they view this as just another obstacle."
Mr Brewer said that thankfully consumers would be compensated with tax cuts and so that would minimise the impact. Nonetheless the rise was still going to cost businesses.
The survey showed that 73 percent of retailers believed the GST increase would cost their businesses money to comply, with the likes of changes to computer systems, and re-pricing and re-tagging merchandise.
Mr Brewer said most retailers were set to directly pass on the GST increase to the consumer.
"There's been a theory circulating that retailers won't put up their prices come October for fear of scaring off price-sensitive shoppers.
"However the reality is there is not much room left in most retailers' margins to absorb the rise, 87 percent of retailers told us they intend to put up their prices to reflect the GST increase."
