The Australian Competition and Consumer Commission will investigate a four per cent increase in Avis car hire rates claimed to be related to the implementation of the Goods and Services Tax, ACCC Chairman, Professor Allan Fels, said today.
"The ACCC is seeking an explanation from Avis as to why it is increasing prices at this stage, when the GST is only applicable from 1 July 2000.
"The ACCC needs to be satisfied that Avis is not anticipating any tax increases it may incur.
"Under the ACCC Guidelines Avis can not increase its dollar net profit margin, and in any case can not raise prices by more than 10 per cent as a result of the GST.
"In addition the ACCC will ensure that any benefits from the New Tax System, such as lower car prices, are fully reflected in Avis car hire charges as these benefits flow through the economy".
The ACCC's monitoring program is to ensure that the costs of the stevedoring levy are fully absorbed by the industry and not passed on to the community.
"The ACCC is seeking an explanation from Avis as to why it is increasing prices at this stage, when the GST is only applicable from 1 July 2000.
"The ACCC needs to be satisfied that Avis is not anticipating any tax increases it may incur.
"Under the ACCC Guidelines Avis can not increase its dollar net profit margin, and in any case can not raise prices by more than 10 per cent as a result of the GST.
"In addition the ACCC will ensure that any benefits from the New Tax System, such as lower car prices, are fully reflected in Avis car hire charges as these benefits flow through the economy".
The ACCC's monitoring program is to ensure that the costs of the stevedoring levy are fully absorbed by the industry and not passed on to the community.