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The Bill also enables us to impose conditions on the granting of first registration tax remission and to provide sanctions against abuse to obtain the remission. This is necessary for the implementation of the proposed scrapping incentive scheme for replacement of old vehicles, as announced in the Budget. Under the scheme, which is being introduced in order to improve air quality, if the owner of a private vehicle of ten years old or more gives up the old vehicle and replaces it with a new one, he would be eligible for a reduction in first registration tax of 20 per cent of the tax payable or $30,000, whichever is the lower amount. The conditions we intend to impose to safeguard against abuse are -
(a)
the old vehicle must be scrapped and de-registered:
(b)
the old vehicle must have been continuously licensed for the 24 months immediately before scrapping;
(c)
the ownership of the vehicle must have remained unchanged for the 24 months immediately before scrapping;
(d)
the right to the concession can only be retained for six months after the scrapping of the old vehicle;
(e)
(1)
the replacement vehicle has to be petrol-engined; and
the transfer of the replacement vehicle purchased within one year after acquisition will be subject to the repayment of the first registration tax remission provided.
Any person who made a false declaration in order to obtain the remission commits an offence and is liable on summary conviction to a fine of $500,000 or imprisonment of 12 months.
The opportunity is also taken in this exercise to rectify minor irregularities in the legislation and to amend provisions related to "disabled person" to reflect accurately the policy intention that first registration tax remission would only be granted to a disabled person who is fit to drive.
Mr President, with these remarks, I commend the Bill to Members.
End