Revenue Minister Peter Dunne says the rate at which New Zealand's tax debt is increasing is alarming.
Total tax debt is more than $4 billion and the Inland Revenue Department estimates that could double over the next five years.
PricewaterhouseCoopers chairman John Shewan says this is not a time when the Government can afford to see tax collection dropping due to bad debt.
He says it compounds with people earning less, unemployment rising and falling business profits.
Mr Shewan told Morning Report that the IRD is already making many of the changes to solve the problem that have been recommended in a report by the Auditor General.
But he said the debt is inflated by late student loan and family assistance payments and politicians must consider the effect of debt in those areas when deciding policy.
