Tax group head 'disappointed' at GST media reports

Tax Working Group head Bob Buckle says he is disappointed at media coverage of the proposed increase in GST.

The chair of the Tax Working Group is disappointed with some of the media coverage of a possible GST increase, and says there are many misunderstandings around what the effects of an increase in GST would be.

Tax Working Group chair Bob Buckle said there were many misconceptions around the "distributional effects" of a GST rise, and some media coverage was compounding the problem.

"Over peoples lifetimes - if you look at their lifetime income - the incidence of GST is broadly proportional, it's neither progressive or regressive," he said.

Buckle said the Prime Minister had tried to make this point on radio this morning.

It was "not very helpful", he said, to see the media asking the public what they thought about a rise in GST to 15 per cent.

"It's no surprise what they are going to say," he said.

Buckle said the media was not presenting people with the "package" before asking them what they thought of a rise in GST.

Allan Lee, a senior lecturer in journalism at AUT, said it was easier for the print media to explain complex financial issues than television.

"It's easier for the print media to do a good job with detail and numbers," he said.

"With a graphic on a page you can sit and study it for a moment and get your head around it, whereas on radio and TV its a fleeting message, and if you miss a step it's too late."

Buckle said the Tax Working Group had suggested a package of reforms that should involve reducing reliance on personal and corporate taxes, and shift the balance towards more taxation on property.

Buckle said a shift to taxation on spending would give people more of an incentive to save, and was the only way to make sure tax revenue was collected from people on high salaries.

"This is all advocated as a way to make the tax system less damaging for growth, but also a fairer tax system and one which will be more sustainable."