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The price of Sun Imports tanning products increased by a full 10% with the implementation of the GST despite the removal of a 22%wholesale sales tax which, in the absence of other factors, should have resulted in a reduction in the price of these products as a result of the changes arising under the New Tax System.
The ACCC wrote to Sun Imports expressing concern that the failure of Sun Imports to pass on savings resulting from the New Tax System changes may amount to conduct in breach of the price exploitation provision of The Trade Practices Act 1974 ("the Act").
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