The Prime Minister's announcement that there will be a likely hike in GST to about 15 per cent has raised concerns among Tauranga's social service agencies.
In his opening tax reform speech in Parliament on Tuesday afternoon, John Key indicated it is likely GST would be raised, possibly to about 15 per cent.

Prime Minister John Key is working towards reforming New Zealand's tax system.

The Prime Minister did indicate that any rise in GST would be offset by cuts in personal income tax.
Tauranga Community Trust Foodbank chairman Don Brebner says a rise in GST will hurt those in Tauranga who are most vulnerable.
'It's sad it's going to be raised. It's going to hurt people in the lower socio-economic group, especially those who have such a low income that any cut in tax won't help them.”
He says it will be hard to predict if a rise would increase the number of people who come to the foodbank for help but is adamant the rise will not help.
Tauranga Budget Advisory Service manager, Marjorie Spicer, says a GST hike is going to affect the average New Zealand's ability to access the most basic needs.
'GST touches all facets of life, there's no escape from it.”
She believes it would be the fairest method to increase revenue through taxation, but says there's no doubt it will hurt lower income earners.
Marjorie says that Tauranga residents are already seeking advice from the budgeting service and a GST rise will make their job harder.
'I'm scared we are not going to be able to meet their needs.”