Planned GST hike, tax cuts, property changes divide opinion
By Audrey Young with NZ Herald staff
Updated 4:55 PM Tuesday Feb 9, 2010

The Government's economic blueprint for the future, revealed by Prime Minister John Key this afternoon, has divided opinion in business and political circles.

In his statement to Parliament, Mr Key strongly signalled a rise in GST to 15 per cent (from 12.5 per cent) along with across-the-board cuts in personal tax, to be formally announced in the May 20 Budget.

Benefits, superannuation and working for families would increase as well to assist people on low incomes who would be hardest hit by a rise in GST (goods and services tax).

The proposed moves were among the most significant changes outlined by Mr Key.

Labour leader Phil Goff described the speech as a let-down after all the hype the Government had put around it.

More here.