Rise in GST ‘will hit poor’
PA Wellington Low-income earners would be hit harder than wealthy investors by a 2.5 per cent GST increase from July 1, the Consumers’ Institute warned yesterday. An institute spokesman, Mr David Russell, said the 2.5 per cent increase on July 1, taking GST to 12.5 per cent, would also boost the cost of all lay-bys collected after the deadline and other purchases such as magazine subscriptions. But it would be false economy for those who have recently taken out a lay-by to raise a loan or use other forms of highcost credit to pay it off before the deadline, Mr Russell said. Interest payments on loans could be higher than the 2.5 per cent saving made by paying off lay-bys before the deadline. The GST payable on credit card purchases would be calculated by the date of purchase of goods and services; GST on hire purchase payments would be determined by the date the agreement was entered into.
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Press, 17 May 1989, Page 5
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164Rise in GST ‘will hit poor’ Press, 17 May 1989, Page 5
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