Finance Minister Nicola Willis has ruled out any increases to GST during the Coalition's term in Government after the Opposition suggested it could be on the cards.
National Party Minister Tama Potaka raised eyebrows last week when he said the Government was focused on "fiscal austerity" on AM last week. In fact, he said the word "austerity" four times during the interview.
Austerity is a term to describe limiting government spending to shrink a budget deficit, usually by measures such as government programme cuts and tax increases.
The use of the word sparked questions from the Opposition on whether that means the Government is going to increase GST to cover its tax cuts.
Appearing on AM on Tuesday, Willis responded by saying austerity isn't a word she would use.
"I don't like that word. I know that my colleague whom I very much admire and respect, Tama Potaka, used that last week but it's a word that I've rejected because our Government is very committed to maintaining and in fact improving frontline services," she told co-host Melissa Chan-Green.
"We're a Government that's very committed to people's incomes, we're committing to reducing taxes and I just don't see any of that as being consistent to what austerity has come to mean for many people."
Willis completely ruled out any increases to GST during the Government's term.
"Yes, I can," she responded.
"I saw my opponent on your show and heard her making up some fantasies about that and look having had some experience in releasing the policies of other parties, you've got to make sure they're right before you do it – and that one was completely off base."
Watch the full video for more.
