Lawmakers move closer to backing car-tax bill
Controversial plans to raise the first registration tax on cars moved closer to law yesterday, with signs that independents will join the Democratic Alliance for Betterment of Hong Kong in backing the bill.
Financial Secretary Antony Leung Kam-chung announced in his budget in March that tax brackets would be raised to up to 150 per cent of the value of the car, prompting an angry reaction from motor traders. Before the budget, tax levels were between 40 and 60 per cent.
The government has since reduced its proposed tax rates to between 35 and 105 per cent of the value of the vehicle. The DAB supports this proposal, but it is opposed by the Democrats, the Liberal Party and other legislators. Support from the Breakfast Group of independents is therefore considered crucial if the proposal is to be passed.
Motor trade representatives, who are lobbying legislators for lower increases, claimed the government had already convinced some independent legislators.
But Eric Li Ka-cheung, an independent lawmaker, maintained he and other Breakfast Group members had not joined the government's camp.
Fellow independent and Breakfast Group member Bernard Charnwut Chan said he supported the proposal. 'I support the rates tabled by the government because richer people can afford more tax,' said Mr Chan.
The committee scrutinising the tax bill met the government for the fifth time yesterday to discuss the proposed increase.
Lawmakers opposing the government plans wanted a more moderate tax scale given the current economic gloom. 'Life was already hard before Sars, and has become even harder after the outbreak,' said the Liberal Party's Selina Chow Liang Shuk-yee, 'Would the government please give some breathing space to the middle class?'
