8 Mar 2010

Labour popularity hopes hitched to GST tax

12:25 pm on 8 March 2010

The Labour Party believes the Government's plan to raise the level of GST has given Labour the chance to put a dent in the National Party's popularity.

During the two-week parliamentary recess, Labour MPs are touring the country in their Axe the Tax bus to address public concerns about the proposal to raise the goods and services tax from 12.5% to 15%.

Labour Party leader Phil Goff, says most people he has met during the campaign are opposed to any increase in the tax.

Finance Minister Bill English says people will oppose a simple rise in GST, but the Government's package also includes heavier taxation of property investment and income tax cuts.