XN000022-1997-04-23 — Page 4

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The Dutiable Commodities (Amendment) Bill 1997 seeks to increase the duties for tobacco, fuel and methyl alcohol by six per cent, in line with inflation, and to reduce the ad valorem duty rate on wine from 90 per cent to 60 per cent. The opportunity is also taken to increase the penalty for offences relating to the marking and the detreatment of marking of diesel oil so as to enhance the deterrent effect against illegal activities on diesel oil. The penalty will be increased from the current level of a fine of $50,000 and imprisonment for six months to a fine of $200,000 and imprisonment for two years.

The Traffic Accident Victims (Assistance Fund)(Amendment) Bill 1997 seeks to make consequential amendments in respect of the Traffic Accident Victims Assistance Fund Scheme to tie in with the issue of 10-year driving licences. The main legislative amendments for the issue of 10-year licences are set out in the Road Traffic (Driving Licences) (Amendment) (No. 2) Regulation 1997 which would also be gazetted on April 25. The Amendment Regulation would be tabled in the Legislative Council on April 30.

The Secretary for the Treasury will introduce the bills into the Legislative Council on Wednesday, April 30.

The Secretary for the Treasury will also move resolutions in the Legislative Council on May 7 to implement the Budget concession proposals on rates, i.e. the reduction of the overall rates percentage charge from 5.5 per cent to five per cent and the capping of rates increase to 20 per cent for 1997-98 and for 1998-99, and on the extension of the first registration tax exemption for electric vehicles for another three years.

The increase in tobacco, fuel and methyl alcohol duties and the reduction in wine duty took effect on March 12 and the concessions in rates, stamp duty on property transactions, estate duty and first registration tax exemption for electric vehicles took effect on April 1 under Public Revenue Protection Orders signed by the Governor on March 11. The Orders are valid for four months.

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