XN000022-1984-11-15 — Page 2

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THURSDAY, NOVEMBER 15, 1984

ROAD PRICING CHARGES NOT ADDITIONAL TAX

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SCOTT

RESEARCH ON ELECTRONIC ROAD PRICING INDICATES THAT IF A FULL SYSTEM WERE INTRODUCED TODAY, AND AFTER TAKING ACCOUNT OF THE CAPITAL AND RECURRENT COST OF THE SYSTEM ITSELF, VEHICLE ANNUAL LICENCE FEES COULD BE REDUCED BY ABOUT HALF.

FURTHER, A STAGED REDUCTION IN FIRST REGISTRATION TAX COULD PE IMPLEMENTED, THE SECRETARY FOR TRANSPORT, MR ALAN SCOTT, SAID AT A LUNCHEON MEETING OF THE AMERICAN CHAMBER OF COMMERCE TODAY.

HE TOOK THE OPPORTUNITY TO PRESENT A FULLER PICTURE OF THE ERP SYSTEM BASED ON LATEST INFORMATION FROM SURVEYS AND RESEARCH WORK IN THE PILOT SCHEME SO THAT CAR OWNERS AND WOULD-BE CAR OWNERS COULD FORM THEIR OPINIONS ON THE MERITS OF CAR OWNERSHIP TAXES OR ELECTRONIC ROAD PRICING.

STRESSING THAT ROAD PRICING CHARGES WERE NOT AN ADDITIONAL TAX, HE SAID THAT FORECASTS OF REVENUE FROM A FULL SYSTEM SHOWED THAT SUBSTANTIAL REDUCTIONS COULD BE MADE IN THE PRESENT HIGH ANNUAL LICENCE FEES AND FIRST REGISTRATION TAXES.

+SUCH HARSH DETERRENTS TO CAR OWNERSHIP WOULD NO LONGER BE NECESSARY. AND THIS PRINCIPLE, I AM HAPPY TO SAY, HAS BEEN ENDORSED BY THE FINANCIAL SECRETARY.

+DEPENDING ON THE ACTUAL LEVEL OF REVENUE FROM ERP CHARGES, IT SEEMS PROBABLE THAT THE INCREASES IN LICENCE FEES AND FIRST REGISTRATION TAX INTRODUCED IN MAY 1982 COULD, OVER A REASONABLE PERIOD, BE REMOVED.

+ IN OTHER WORDS, THAT PART OF TAX AND LICENCE FEES WHICH WAS IMPOSED FOR TRANSPORT POLICY REASONS IN MAY 1982 COULD BE REMOVED, LEAVING THE FINANCIAL SECRETARY TO DETERMINE TAX AND LICENCE FEES ON FISCAL POLICY GROUNDS ALONE, MR SCOTT SAID.

HE SAID THAT A FULL ERP SYSTEM WOULD NOT NEED TO BE APPLIED THROUGHOUT THE TERRITORY, BUT ONLY ALONG THE NORTHERN SHORE OF HONG KONG ISLAND AND IN KOWLOON.

+ALL TRAFFIC MOVEMENTS WITHIN THE NEW TERRITORIES AND WITHIN THE SOUTHERN AREA OF HONG KONG ISLAND - ABOUT TWO-THIRDS OF TOTAL MILEAGE - WOULD INCUR NO CHARGES AT ALL.

+ABOUT 250 TOLL SITES WOULD PROVIDE A SERIES OF CONTIGUOUS ZONES THROUGHOUT THE MAIN URBAN AREAS, AND THUS CONGESTION WOULD

AN ANXIETY EXPRESSED NUT BE SQUEEZED FROM ONE AREA TO ANOTHER FY SOME COMMENTATORS.

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/+THE INTUCTION