XN000022-1994-03-02 — Page 45

WEDNESDAY, MARCH 2, 1994

33

VEHICLES

WERE A

MAJOR

CAUSE

OF

AIR

HE SAID

FUEL-ENGINED

POLLUTION, UNLIKE ELECTRIC VEHICLES.

"THESE, HOWEVER, ARE AT PRESENT STILL MORE EXPENSIVE THAN FUEL- ENGINED ONES BECAUSE OF HIGH DEVELOPMENT COSTS LEVELS."

AND LOW PRODUCTION

HE ADDED:

"

REDUCING

THEIR

VEHICLES REGISTERED THIS SHOULD INITIAL

I PROPOSE TO EXEMPT ELECTRIC DURING THE NEXT THREE YEARS FROM FIRST REGISTRATION TAX. MAKE ELECTRIC COST.

**

VEHICLES MORE ATTRACTIVE BY

"I SHALL ASSESS THE BENEFITS OF THIS CONCESSION TOWARDS THE END OF THE PERIOD TO SEE WHETHER IT SHOULD BE EXTENDED,"

IMPLEMENTATION DATES FOR TAX PROPOSALS

THE PROPOSED INCREASE IN THE FUEL DUTY AND THE NEW ALCOHOL DUTY STRUCTURE ANNOUNCED BY THE FINANCIAL SECRETARY, THE HON SIR HAMISH MACLEOD, IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) CAME INTO EFFECT UNDER A PUBLIC REVENUE PROTECTION ORDER ISSUED TODAY.

PROPOSALS ON PERSONAL TAXATION, PROFITS TAX. BUSINESS REGISTRATION FEE, ESTATE DUTY, STAMP DUTY, AIR PASSENGER DEPARTURE TAX, LOTTERY DUTY AND RATES, AS WELL AS CONCESSIONS IN RESPECT OF ELECTRIC CARS AND DIAL-A-RIDE REHABUS PASSENGERS, WILL COME INTO EFFECT ON APRIL 1, THIS YEAR, SIR HAMISI SAID.

0

—

LAWS TO DEAL WITH TAX EVASION AND AVOIDANCE

THE FINANCIAL SECRETARY, THE HON SIR HAMISH MACLEOD, TODAY (WEDNESDAY) PLANNED TO INTRODUCE LEGISLATION TO DEAL WITH TAX-EVASION AND THE TAX-AVOIDANCE ASPECTS OF SERVICE COMPANY ARRANGEMENTS.

SIR HAMISH SAID HONG KONG'S TAXES WERE LOW, SIMPLE AND PREDICTABLE.

THERE WAS

NO POSSIBLE EXCUSE FOR FAILING TO PAY IN FULL THE MODEST

PUBLIC TAX OBLIGATIONS WHICH HONG KONG IMPOSES TO FINANCE ITS SERVICES AND FACILITIES, HE SAID.

"

'INDEED,

THE WORLD COMPETITIVENESS REPORT 1992 ESTIMATED THAT HONG KONG'S TOTAL TAX REVENUE AT ONLY 11.25% OF GDF WAS THE LOWEST PERCENTAGE OF ALL 36 ECONOMIES SURVEYED.

|

THE PACKAGE OF CONCESSIONS AND REFORMS 1 HAVE WILL FURTHER REDUCE THE TAX PAYABLE BY BOTH

BUSINESSES.

PROPOSED TODAY INDIVIDUALS AND

/HE SAID