XN000022-1985-03-27 — Page 10

WEDNESDAY, MARCH 27, 1985

RESERVATIONS FELT ABOUT CAR LICENCE FEE RISE

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DR HON HO KAM-FAI SAID THAT THOUGH HE SUPPORTED THE BUDGET PROPOSALS AS A WHOLE, HE HAD RESERVATIONS ABOUT THE PROPOSED 10 PER CENT INCREASE IN ANNUAL VEHICLE LICENCE FEES AND DRIVING LICENCE FEES.

SPEAKING IN THE LEGISLATIVE COUNCIL TODAY, DR HO SAID THAT AS A RESULT OF HEFTY INCREASES IN ANNUAL LICENCE FEES AND FIRST REGISTRATION TAX IN MAY 1982, THE NUMBER OF LICENSED PRIVATE CARS HAD DROPPED FROM 217 945 IN MAY 1982 TO 180 084 IN FEBRUARY 1985.

CONSEQUENTLY, HE SAID, ROAD CONGESTION HAD BEEN RELIEVED TO SOME EXTENT+.

+THERE IS NOW NO JUSTIFICATION TO USE FISCAL MEASURES TO BRING CAR OWNERSHIP FURTHER DOWN,+ HE SAID.

DR HO ALSO SAID THAT AS THE ANNUAL LICENCE FEES AND FIRST REGISTRATION TAX COULD BE SUBSTANTIALLY REDUCED IF THE PRESENT ELECTRONIC ROAD PRICING PILOT SCHEME PROVED SUCCESSFUL, HE FELT THERE WAS NO URGENT NEED NOW TO INCREASE THOSE FEES.

FURTHERMORE, HE SAID, PRIVATE CAR OWNERS AS A GROUP HAD ALREADY CONTRIBUTED MORE THAN THEIR FAIR SHARE TO THE PUBLIC COFFERS, AND THEY +DESERVED A BREAK, AT LEAST PENDING A DECISION ON THE ELECTRONIC ROAD PRICING SYSTÉM.+

+MOREOVER, THE OPENING OF THE MTR ISLAND LINE THIS SUMMER MIGHT FURTHER ENCOURAGE PEOPLE TO LEAVE THEIR CARS AT HOME IN FAVOUR OF PUBLIC TRANSPORT, DR HO SAID.

DR HO ALSO ASKED THE FINANCIAL SECRETARY TO CONSIDER SOME OF THE REPRESENTATIONS MADE TO UMELCO AGAINST THE IMPOSITION OF A 25 PER CENT AD VALOREM DUTY ON COSMETICS AND PERFUMES.

+THE INTRODUCTION OF THE DUTY ON COSMETICS IS TOO ABRUPT CAUSING POSSIBLE FINANCIAL LOSSES AND DISRUPTION TO THE COSMETICS BUSINESS.

+HENCE IT IS PROPOSED THAT SHIPMENTS OF COSMETICS PRODUCTS FOR WHICH ORDERS HAVE BEEN PLACED BEFORE FEBRUARY 27 SHOULD BE EXEMPTED FROM THE DUTY, HE SAID.

HE ADDED THAT THE FOB VALUES OF THE IMPORTED COMMODITIES SHOULD BE TAKEN AS THE BASE FOR CALCULATING THE TAX PAYABLE, RATHER THAN CIF PRICES.

/DR HO

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