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"In the context of the 1996-97 Budget, we introduced legislation to tackle the problem of over-declaration of tax exempted items, i.e. exempted accessories and distributor's warranty, as a means to reduce the FRT payable."
"The current amendments seeks to make other improvements identified in the
review."
The Bill seeks to improve the system for filing import return to facilitate trade operation. For example, the requirement to file import return will no longer apply to special vehicles used in the airport, cargo terminals or constructions sites, which are not subject to FRT. There will also be more flexibility in the submission of import
return.
The spokesman said to plug a loophole whereby some vehicle traders provide distributor's warranty on a mandatory basis to buyers and seek to manipulate the price structure of vehicles so as to reduce the FRT payable, the Bill also seeks to amend the law so that the value of any warranty provided on a mandatory basis will be subject to FRT.
"To provide a level playing field between the import of vehicles by registered operators for trade purposes and import for personal use, the Bill provides that all costs incurred in relation to the importation of a motor vehicle have to be declared in the import return and FRT will be calculated on the basis of these costs." the spokesman said.
The Secretary for the Treasury will introduce the Bill into the Legislative Council on November 13.
End
Subsidiary legislation under Dutiable Commodities Ordinance
The Governor-in-Council has made amendments to the subsidiary legislation under the Dutiable Commodities Ordinance to set out safeguards for the protection of the right of the person to be compounded,
A government spokesman said today (Wednesday) that the amendments were mainly consequential to the changes made to the Ordinance, which was amended in June this year.