Savings to be made ahead of GST rise

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Fri, 24 Sep 2010 12:29p.m.

There are savings to be made ahead of next week's GST hike

There are savings to be made ahead of next week's GST hike

By Emma Brannam

GST rises to 15 percent next Friday, October 1.

This weekend is the last that shoppers will have to make any savings.

But unless you’re buying major goods, is it really worth it?

Those in the market for a new car would be wises to get it now – most cars will cost hundreds more from next Friday.

Some car yards have been trying to boost sales with “beat the GST” campaigns.

“We’ve noticed an increase in some selected models, but overall we’re probably a wee bit disappointed with the total volume of sales that have come through in the last couple of months,” says KIA Motors spokesman Todd McDonald.

When confirmed, back in May, the GST hike caused quite a stir. But a week out, many shoppers don’t seem bothered.

Since the recession, shoppers have cut down on spending – so the heats on retailers to absorb the GST increase wherever possible.

“We’ve worked hard to keep a number of products the same prices,” says Noel Leeming Group chief executive John Journee.

Shops like Briscoes and Rebel Sport are showing customers which items will increase.

“I think there were a fair few stories about retailers using it as an opportunity to hike prices,” says Briscoes and Rebel Sport COO Peter Burlin.

“With the two prices they can clearly see what it’s going to be and with the two prices is just a GST change.”

Many shoppers may not feel it’s worth rushing to the stores, especially if they’re only after the smaller items. But there are savings to be made.

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Comments

26 Sep 2010 01:07p.m.

John Davis wrote:

Another punch in the gut from the government, just as we try to recover from the economic depression. nice..

24 Sep 2010 06:56p.m.

lettie wrote:

Another government rip off!!!The poor will suffer so to help the rich get richer! This govt is gonna force the poorer class into homelessness, suicides and immense suffering. Have a general wage increase of 15% for all those earning under 55k. Dumb idiots man! I was born and raised in NZ, but i'm not coming home again to suffer hardship and struggle! Wages suck. The govt hasn't done anything for the lower class people since GST was introduced back in the Ruth Richardson days. but that's ok cause she made her bucks of the taxpayers and retires healthy with all the perks and all those who succeed to the power of putting NZers into debt and hardship. That's all the NZ govt is good at raising debt and depression. Get someone in there with brains and who cares about the people!!

24 Sep 2010 03:49p.m.

David Jacobs wrote:

I am pleased that you stated that GST will rise TO 15% and not try to scaremonger like Goff and say that everything will rise by 15%.
Comments, particularly blatantly incorrect comments, from the leader of the opposition, are simply dishonest. Maybe he thinks that there has alredy been so much dishonesty in the House, a few more lies won't hurt. He is wrong!

24 Sep 2010 01:52p.m.

Lightseed wrote:

not exactly because some of the main chains have said they will not raise their prices and will take the hit from the 2.5% increase, one of these chains has been the Warehouse. It will just take one main chain to stop the others from raising their prices.