GST increase

On October 1st, GST will increase from 12.5% to 15%. This is a 2.2% increase. At the same time, we will have tax cuts on our pay. Benefits will also increase a little to help with the higher GST. Listen to May 20th 2010 for more about tax cuts and the GST increase.

The Labour Party wanted no GST on fresh fruit and vegetables which would help people on low incomes and would also encourage healthy eating. However, the government has decided that GST will go on everything. This is much simpler for businesses like supermarkets.

Businesses cannot increase products by too much or they will be fined. We can expect increases for most things although it is difficult to add 2.2% to $3.50 for a cup of coffee or $5 for a hamburger. In New Zealand, the price that is shown must include the GST. $3.58 for a cup of coffee or $5.11 for a hamburger would be a nuisance. Restaurants can keep some things the same price but increase others by more than 2.2%; for example they can keep long black coffee at $3.50 but increase a latte to $4 which is an increase of 14%.

One thing that will go up by more than 2.2% is the price of petrol. This is because an extra 3c a litre tax is added from Oct 1st. At the moment, petrol is about $1.74 a litre for regular petrol. That will increase 7 cents to $1.84.

What is the difference between the following: increase by, increase from, increase to, an increase of? Can you make sentences using these? Find how they are used in the text.
Do you think GST is a fair way to tax people?
Do you think GST should be added to everything?

One Comments

  1. I think the GST has increased too much.
    John Key says that it will make more money in peoples pockets,
    i don’t think so, i think the prices have gone way to much and like it says we are forced not to buy fresh fruits or vegetables because of it’s price. I think John Key should take action!

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