Fed: ACCC denies business allowed to use GST to slug customers

AAP General News (Australia)
02-15-2000
Fed: ACCC denies business allowed to use GST to slug customers

CANBERRA, Feb 15 AAP - Business would be allowed to lift prices to compensate for the
cost of implementing the GST, the GST watchdog today confirmed.

But the Australian Competition and Consumer Commission (ACCC) denied claims the ruling
gave business open slather to raise prices.

ACCC chairman Allan Fels ridiculed claims a confidential discussion paper had secretly
given business the go-ahead to lift prices to off-set GST implementation costs.

"There is nothing new or confidential here," he said in a statement.

"The ACCC has always said that net additional reasonably incurred compliance costs
can be passed on in prices providing no one price rises by more than 10 per cent."

The Consumer Policy Centre has attacked the ruling, warning it leaves the door open
for business to use any excuse to raise prices, leaving consumers none the wiser.

Professor Fels said that was a gross misrepresentation of the ACCC's policy.

"This is wrong and irresponsible," he said.

Prof Fels said costs incurred by business in switching to the GST had to be offset
against savings made because of the simplified new tax system.

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KEYWORD: TAX ACCC

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