Yesterday's budget announced a hike in the prices of goods and services with the 2.5% increase in GST.

This rise could start to hit soon. And the business tax experts were concerned about the short length of time for businesses to prepare for the increase, which comes into effect on October 1.

Some retailers like The Warehouse are saying that they are aiming to avoid any price increases. While other retailers are saying that they will be selective.

When asked about this sudden hike in prices, to the small stores owners they said that if their suppliers will put up the recommended retail price, they will to. The retail store owners may increase the price by more than 2.5%.

While a bookstore owner said that people who want books will buy books, and people will have a little bit more money in their pocket anyway, so I don't think the average person will even notice the extra dollar, 50 cents, whatever it is, on a book.

Russell Sinclair told that the budget will promote growth in the economy and the retailers have sufficient time to cope with it.

But the most immediate concern for most, particularly those selling goods and services directly to consumers, would be how much to increase prices. Moreover, the costs of compliance would ultimately be passed on to consumers in the form of increased prices.

Transitional issues will be created, as tourism operators working in the international marketplace set their contracts up to two years in advance, mentioned by the TIA Chief Executive, Tim Cossar said.