VEHICLES OWNED BY CHARITABLE INSTITUTIONS (Exemption from double road tax)

Mr Ho See Beng asked the Minister for Finance if he will consider exempting vehicles owned by charitable institutions which are non-profit making organisations from double road tax.

The Minister for Law and the Environment (Mr E. W. Barker) (for the Minister for Finance): Sir, may I answer for the Minister-in-charge.

The double rate of road tax is meant to apply to all motor cars, except hearses, owned by organisations and the Minister does not intend to exempt any such organisations. Charitable institutions which find it necessary to own motor cars will have to pay the double rate.

However, it is not expected that charitable institutions will be badly affected. It is likely that for their activities, they will find mini-buses or vans more suitable than saloon cars, if motor vehicles are required at all. Mini-buses or vans will not be subject to the double road tax.

Mr Ho See Beng (Bras Basah): Mr Speaker, Sir, can I ask a supplementary question, as the Minister who is now answering the question is not the Minister for Finance?

Mr Speaker: Yes.

Mr Ho See Beng: Sir, how could the Minister allow donations to recognised charitable institutions to be deductible from income tax on the one hand, but on the other hand he refuses to exempt the same charitable institutions from double road tax?

Mr Barker: The answer has already been given just now. The question of income tax is one matter. If charitable institutions want donations, naturally the donors should be given some inducement. So donations to charitable institutions are not liable to income tax, whereas road tax is another matter. As I have pointed out, if they use vans or mini-buses they will not have to pay the double rate.