XN000022-1993-05-05 — Page 40

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WEDNESDAY, MAY 5,

MAY 5, 1993

BILL INTRODUCED TO PLUG CAR TAX LOOPHOLE

* *

(FRT)

A BILL PROPOSING TO CLOSE A MAJOR FIRST REGISTRATION TAX

FIELD FOR MOTOR VEHICLE LOOPHOLE AND TO PROVIDE A LEVEL PLAYING DEALERS WAS INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MOVING

THE MOTOR VEHICLES

READING OF THE SECOND

(FIRST REGISTRATION TAX) (AMENDMENT) (NO. 2) BILL 1993, THE SECRETARY FOR THE THE TREASURY, MR KY YEUNG, SAID THE BILL ALSO SOUGHT TO PROTECT BOTH PUBLIC REVENUE AND THE CONSUMER.

AT

THE

AMOUNT

OF

FRT

PRESENT,

PAYABLE CALCULATED ON THE BASIS OF ITS COST, INSURANCE VALUE.

ON

AND

A

VEHICLE IS FREIGHT (CIF)

THE

THUS MOTOR VEHICLE DEALERS ARE ABLE LAWFULLY TO CIF VALUE OF THEIR VEHICLES IN ORDER TO REDUCE THE AMOUNT OF PAYABLE.

UNDER-DECLARE

FRT

AVOIDANCE, INDIVIDUAL

BECAUSE THE PRESENT LEGISLATION LEAVES ROOM FOR TAX AND IS DEFICIENT IN ITS PROVISIONS TO COUNTER TAX EVASION, DEALERS WHO ABUSE THE SYSTEM CAN ENJOY AN UNFAIR COMPETITIVE ADVANTAGE OVER THE MAJORITY WHO ABIDE BY THE SPIRIT OF THE

LAW.

EVASION, ALMOST ALL THE

MR YEUNG SAID BY LIMITING THE SCOPE FOR AVOIDANCE AND THE BILL WOULD CREATE A LEVEL PLAYING FIELD AMONG NEARLY 40 MOTOR VEHICLE DISTRIBUTORS IN HONG KONG,

EXPLAINING THE NEW APPROACH, HE SAID THE BILL WOULD REQUIRE ANY PERSON WHO CARRIED ON THE BUSINESS OF IMPORTING AND DISTRIBUTING MOTOR COMMISSIONER FOR VEHICLES FOR USE IN HONG KONG TO REGISTER WITH THE TRANSPORT.

"THIS

SALE

IS IS A BASIC REQUIREMENT TO ENSURE THAT THE GOVERNMENT

A MEANS OF AWARE OF THE EXTENT OF THE MOTOR VEHICLE MARKET AND AS

FOR OF VEHICLES

USE

THE THE

IN UNAUTHORISED MONITORING TERRITORY, HE SAID.

WHICH VEHICLE

SECONDLY, A REGISTERED DISTRIBUTOR WILL HAVE TO PUBLISH A THE RETAIL PRICES OF ALL MAKES OF MOTOR OFFERING FOR SALE.

OF

LIST

HE IS

THE FRT ON EACH VEHICLE WILL BE CALCULATED ON THE BASIS OF THIS PUBLISHED LIST PRICE, AND IT WILL BE AN OFFENCE TO SELL THE VEHICLE AT A PRICE HIGHER THAN THE PUBLISHED VALUE.

"I EMPHASISE THAT THIS IN NO WAY CONSTITUTES INTERFERENCE THE FREE MARKET OR AN ATTEMPT AT PRICE CONTROL BY THE GOVERNMENT, YEUNG SAID.

WITH

MR

LOWER ΤΟ

NOT ONLY WILL DEALERS BE FREE TO SELL VEHICLES AT PRICES THAN THE PUBLISHED VALUE, IF THEY WISH, BUT THEY WILL ALSO BE ABLE

THAT THEY NOTIFY THE PROVIDED INCREASE THE PRICE AT ANY TIME, COMMISSIONER FIRST, HE ADDED.

"PUBLICATION WILL PROVIDE THE CRITICAL INFORMATION FROM THE COMMISSIONER WILL BE ABLE TO DETERMINE, AS A MATTER OF FACT, PROPER AMOUNT OF FRT TO BE PAID.'

WHICH

THE

/WHEN A

+

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