XN000022-1993-04-23 — Page 12

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CAR REGISTRATION TAX BILL

FRIDAY, APRIL 23, 1993

THE MOTOR VEHICLES (FIRST REGISTRATION TAX) (AMENDMENT) (NO.2) BILL 1993 WAS GAZETTED TODAY (FRIDAY).

"THE BILL FULFILS THE PLEDGE MADE BY THE FINANCIAL SECRETARY IN HIS BUDGET SPEECH TO INTRODUCE LEGISLATION CLOSING A TAX LOOPHOLE WHEREBY SOME MOTOR VEHICLE DEALERS CAN ARTIFICIALLY DEPRESS THE COST, INSURANCE AND FREIGHT (CIF) VALUE OF THEIR VEHICLES, IN ORDER то REDUCE THE AMOUNT OF FIRST REGISTRATION TAX (FRT) PAYABLE, A GOVERNMENT SPOKESMAN SAID.

THE BILL CHANGES THE BASIS FOR THE CALCULATION OF FRT FROM THE BASIC CIF VALUE TO THE RETAIL PRICE.

+

"SINCE THE PURPOSE OF THE BILL IS NOT ΤΟ RAISE NEW REVENUE, THE TAX RATES PAYABLE HAVE BEEN REVISED DOWNWARDS SUBSTANTIALLY.

"THE AIM IS TO ENSURE THAT THERE ARE NO SIGNIFICANT INCREASES IN THE AVERAGE PRICE OF ORDINARY MOTOR VEHICLES, 17 THE SPOKESMAN SAID.

HE EMPHASISED THAT THERE WOULD BE LITTLE OR NO CHANGE ΤΟ THE FRT PAYABLE ON COMMERCIAL VEHICLES.

THE FRT PAYABLE AND THEREFORE THE PRICE OF CERTAIN MAKES AND MODELS OF PRIVATE CARS MAY DECREASE WHILE THAT OF OTHERS MAY INCREASE SLIGHTLY.

"WE HOPE THAT THE BILL WILL RE WELCOMED BY MOST MAJOR CAR DISTRIBUTORS AS WELL AS THE GENERAL PUBLIC, THE SPOKESMAN SAID.

"FOR CAR DISTRIBUTORS, THE BILL WILL CREATE A LEVEL FIELD AND HELP TO REDUCE SUDDEN PRICE FLUCTUATIONS.

PLAYING

IT WILL

**FOR CONSUMERS, A MAJOR ADVANTAGE OF THE BILL IS THAT ALLOW THE PUBLIC TO KNOW FOR THE FIRST TIME HOW MUCH FRT THEY ARE PAYING AND THE BASIS ON WHICH IT IS CALCULATED," THE SPOKESMAN ADDED.

"THERE IS NO PROVISION FOR THIS IN THE EXISTING LAW."

UNDER THE BILL, ALL MOTOR VEHICLE IMPORTERS AND DISTRIBUTORS MUST BE REGISTERED. THE DISTRIBUTORS MUST PUBLISH A LIST OF RETAIL PRICES AND DELIVER UPDATED LISTS TO THE COMMISSIONER FOR TRANSPORT (C FOR T FOR THE ASSESSMENT OF FRT.

THE FRT PAID WILL THEN BE BASED ON THE PUBLISHED RETAIL PRICE.

"C FOR 1* WILL ISSUE A PRACTICE NOTE TO CLARIFY FOR DISTRIBUTORS AND THE PUBLIC HOW THE BILL WILL OPERATE IN PRACTICE.

"THE COMMISSIONER OF CUSTOMS AND EXCISE WILL ACT AS C FOR AGENT IN ENFORCING THE BILL'S PROVISIONS,

++ THE SPOKESMAN ADDED.

THE BILL WILL BE INTRODUCED INTO THE

LEGISLATIVE

T'S

COUNCIL,

ON

MAY 5.

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