New Zealanders, it seems would be facing the brunt of the increase in GST. In a new development, electricity provider Contact Energy has indicated an increase in prices from the 1st of October, 2010.

The rise in the prices being charged by Contact Energy, have been stated to be around 6%.

Though, Prime Minister John Key has stated that families residing in New Zealand by the end of this year would be richer by $25NZ that does not seem to be the case, according to the Labor Party.

Labor Party stated that the New Zealand Institute of Economic Research in their argument said that almost half of the households in New Zealand would be poorer by the end of this year. 

Costs of public transport would see an increase in prices as well, with Go Wellington announcing an increase in fares. The increase in fares would lead to some passengers shelling out as much as $5NZ more, weekly.

Many people have already started questioning the cause behind reducing personal taxes, when they would have to face the brunt of the increase in GST, from 12.5% to 15%.

Anette King, Deputy Leader, further questioned as to how come New Zealanders would benefit from the tax cuts, when the increase in GST has already led to an increase in prices, which have eaten away the money that New Zealanders would have saved by the tax cuts.