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A 10-year licence would make life easier for drivers and reduce administrative costs for the Transport Department. Since 10 years is a long time, the Commissioner for Transport would issue notices to remind people that their licences were due for renewal, he added.
On the scheme to encourage people to scrap their old cars on environmental grounds, which was introduced last year, Mr Tsang proposed to extend it for another 12 months and review it again at the end of the period.
"Since the scheme started in June last year, we have received an average of about 150 applications each month. As I promised in the last Budget, I have reviewed the effects of the scheme. It works and there have been no abuses."
To increase the number of cars eligible under the scheme, the Financial Secretary would cut the period a person was required to own the car before it was scrapped from two years to one year.
"And I will reduce the requirement for the car to have been licensed immediately before scrapping from two years to one." he said.
Mr Tsang also proposed to extend First Registration Tax exemption to electric vehicles for another three years with another review at the end of the period.
He reiterated that the aim was to make electric vehicles, which do not cause air pollution, more attractive by reducing their initial cost.
End
Exemption level for estate duty raised
The Financial Secretary. Mr Donald Tsang, proposed to increase the level below which no estate duty is payable from $6.5 million to $7 million for the 1997/98 fiscal year.
"Above that level. I propose that estate duty be payable at 6 per cent on estates between $7 million and $8.5 million; 12 per cent on estates between $8.5 million and $10 million; and 18 per cent on estates over $10 million," he said.