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"Proposals on the timing of the introduction of such tax and the actual amounts involved will be submitted to the Executive Council for consideration, and actual implementation will also be subject to the approval of the Legislative Council by resolution," he added.
At present, the Cross Harbour Tunnel (Passage Tax) Ordinance already provides that the passage tax at the Cross Harbour Tunnel can be increased by means of a Legislative Council resolution.
The Inland Revenue (Amendment)(No 4) Bill 1995 seeks to amend the existing law to discontinue tax concessions given in relation to acquisitions and use of company-owned cars.
"The administration considered that these tax concessions provide a positive incentive for companies to purchase private cars which, given our congestion problem, is not acceptable," the spokesman said.
"Under the new provisions, no outgoings or expenses incurred in connection with the acquisition, financing, leasing, maintenance, operation or use of a private car shall be deducted in the calculation of a person's assessable income as well as in the calculation of taxable profits.
"An exception will be made for car dealers, who will continue to be entitled to such deductions in respect of their trading stock.
"The exception will be made because such expenses arise directly as an integral part of the cost of stock-in-trade rather than through the ownership and use of private cars," he said.
The bill also excludes private cars from the ambit of machinery or plant so that depreciation allowance grantable under the ordinance will not be granted in respect of private cars.
1996.
The three bills will be introduced into the Legislative Council on January 10,
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