XN000022-1995-06-07 — Page 61

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Illegal sale of marked oil

Following is a question by the Hon Zachary Wong and a written reply the Secretary for the Treasury, Mr K C Kwong, in the Legislative Council today (Wednesday):

Question:

Regarding the illegal sale of marked oil, will the Government inform this

Council:

(a)

(b)

(c)

of the volume of cases relating to the illegal sale of marked oil, together with the volume of oil seized and the amount of tax involved, in the last three years; and of the penalty generally imposed on the accused;

whether the number of cases has indicated an upward trend, if so, whether it is related to the leniency of sentences passed; and

how the illegal sale of marked oil can be eradicated more effectively; whether the authorities concerned are adequately staffed; if not, whether additional staff will be provided?

Reply:

(a)

The information sought by the Honourable Member is set out in the following two tables -

1992-93

1993-94

1994-95

Misuse of marked oil and detreated oil

Cases detected

268

Seizures (litre)

130,438

Duty Potential ($)

268,826

326 (+22%) 64,576 (-50%) 146,609 (-45%)

461 (+41%) 699,774 (+984%) 1,728,530 (+1079%)

Statistics on Penalties *

1992

1993

1994

Statutory maximum penalty under the Dutiable Commodities Ordinance (Cap.

109):

use or place marked oil in the fuel tank of a motor vehicle or sell for this purpose: Fine $100,000 and 2 year imprisonment

remove any marker or colouring substance from marked oil:

Fine $5,000 and 6 month imprisonment

Range of penalty Fine:

imposed

Fine:

Fine:

$200 - $20,000 $500 - $12,000

$500 - $10,000

* Statistics based on financial year are not available.