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Car tax rise to ease traffic jam


(To watch the full press conference with sign language interpretation, click here.)

The proposed increases in the first registration tax for private cars and the vehicle licence fee could help ease traffic congestion, Secretary for Transport & Housing Frank Chan said.

 

Elaborating on the Budget initiatives at a press conference this morning, Mr Chan said road traffic condition has been deteriorating as the number of private cars has been on the rise.

 

?We have considered the increase of private cars in terms of numbers from about 420,000 to 570,000 within 10 years? time. The change is indeed a lot, therefore the (traffic) congestion has been seriously disturbing or hurting the commuting public, day by day. In addition, there is also roadside emission. It is not good for public health.

 

?Therefore, it comes to a point that we need to take action to curb the growth of private cars. As we all know, public transport in Hong Kong is well renowned for its efficiency, affordability and service, and over 90% of the commuting trips of Hong Kong people are on public transport. Travel by private cars is one of the various options that Hong Kong people can choose.?

 

The transport chief stressed various factors have been taken into account when considering the tax and fee changes.

 

?With regard to the percentage increase, we have considered the prevailing economic situation, the affordability of car owners and a host of other factors. We consider the percentage change is appropriate,? he added.


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