CUSTOMS (AMENDMENT) BILL

Order for Second Reading read. 2.00 pm.

The Minister for Finance (Dr Richard Hu Tsu Tau): Sir, I beg to move, "That the Bill be now read a Second time."

At present, diesel tax is computed on a monthly basis. It is payable from the first day of the month when a vehicle is registered, regardless of the date of registration. If a vehicle is de-registered or laid-up before the last day of the month, the tax is still payable for the whole of that month. Refund will only be given for the remaining complete months for which the tax has been paid.

It has now been decided that diesel tax will be pro-rated on a daily basis for the actual period of use. Under the new system, diesel tax will be computed from the date of registration of the vehicle instead of from the first day of the month. If a vehicle is de-registered or laid-up before the end of the month, refund will be granted for the entire unused period.

The Customs (Amendment) Bill is to provide for the pro-rating of collection of diesel tax. It will also empower the Registrar of Vehicles to seize and dispose of a motor vehicle for the recovery of arrears of diesel tax.

Mr Speaker, Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. -- [Dr Richard Hu Tsu Tau].

Bill considered in Committee; reported without amendment; read a Third time and passed.