1957-HKRS28-8-24_Part01 — Page 45

(Cap. 220).

(Cap. 47).

Payment of tax+

"Commonwealth product", in relation to a motor vehicle, means a motor vehicle which is substantially manufactured within the Commonwealth;

"first registration" means first registration in accordance with the provisions of regulations made under the Vehicle and Road Traffic Ordinance;

"motor vehicle" means any mechanically propelled vehicle in- tended or adapted for use on roads but does not include any conveyance for use solely on railways or tramways;

"tax"

means Commonwealth Preference Tax payable under sec- tion 3 and includes any tax which was paid or was payable in accordance with the provisions of the Commonwealth Preference Ordinance.

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(z) No motor vehicle shall be deemed to be substantially manufactured within the Commonwealth unless, in the opinion of the Commissioner, at least one-half of the value thereof, calculated in accordance with the provisions of section 4 is the result of labour within the Commonwealth is)

Provided that the Governor in Council by order may vary such proportion.

(3) In this Ordinance, any reference to "Commonwealth" shall be deemed to include a reference to the Union of Burma and the Republic of Ireland.

3.

On the first registration of every motor vehicle which, in the opinion of the Commissioner, is not a Commonwealth product, there shall be charged and paid, in addition to any tax or other charge imposed by any other enactment, Commonwealth Preference Tax equal to 15% of the value of such veltiçle calculated in accordance with the provisions of section 4:

Provided that if tax was not paid in respect of a motor vehicle on first registration by reason of the fact that the owner of the motor vehicle was then, for any reason whatsoever, exempt from payment of such tax or that the vehicle was not then liable for such tax notwithstanding that it was not a Commonwealth product, tax shall be chargeable and paid on such motor vehicle on the first transfer thereof into the name of a person who is not exempt from payment of tax, or when the vehicle becomes liable for tax.

4. (1) Subject to the provisions of this Ordinance, the value Calculation of a motor vehicle, for the purposes of sections 2 and 3, shall be of value.

(a) in the case of a new motor vehicle brought into the Colony in such state and condition as is required for first registration, the price which an importer would give for the motor vehicle, delivered, freight and insurance paid, to the Colony;

(b) in the case of a new motor vehicle, brought into the Colony not in such state and condition as is referred to in paragraph (a), such amounts as are prescribed in that paragraph together with cost of all materials and work necessary to bring the motor vehicle into the state and condition referred to in that paragraph;

(c) in the case of a motor vehicle other than a new motor vehicle, the price which an importer would have given for the motor vehicle delivered as a new motor vehicle, freight and insurance paid to the Colony, less deprecia- tion at such rate and in such manner as is prescribed by rules, for the calculation of depreciation under section 37

of the Inland Revenue Ordinance, made under section Kg (Cap. 112, of that Ordinance, for the period from the date when the 1966

Reprint). motor vehicle ceased to be a new motor vehicle until the date of importation into the Colony, or the market value in the Colony at such later date, whichever is the greater;

Or

(d) in the case of a motor vehicle in respect of which tax is payable in accordance with the proviso to section 3 the value as calculated in accordance with the provisions of paragraph (a) or of paragraph (c), as the case may be, less depreciation as in paragraph (c) for the period from the date of importation into the Colony until the date of transfer, or the market value in the Colony at such later date whichever is the greater;

in each case subject to the deduction of the value of all tyres, any spare wheel and any spare parts.

(2) In this section "new motor vehicle" means a vehicle which has not been used on any road outside the Colony other than by the manufacturer thereof or by his agent or by a retailer.