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SCMP Reporter

The legislature last night voted down proposed increases to vehicle and driving licence fees and parking meter charges, costing the Government $270 million in lost revenue.

The proposal to raise the vehicle and driving licence fees by 10 per cent was defeated by 32 votes to 12. The Democrats, the Liberal Party, the Democratic Alliance for the Betterment of Hong Kong (DAB) and the Progressive Alliance opposed it.

Secretary for Treasury Denise Yue Chung-yee warned after the vote that the forgone revenue of $270 million would increase the budget deficit.

She said the increase in transport-related licence fees would cease to have effect from tomorrow.

The increased licence fees took immediate affect on March 7 when they were announced as revenue measures in the Budget.

Those who had already paid the increased fees would be refunded the additional amount, Ms Yue said.

The Transport Bureau would announce the refunding details later, she said.

Another proposal, to raise parking meter fees from $2 to $3 for 15 minutes, was defeated by 25 votes to 18. The Democrats, DAB and The Frontier voted against it.

Liberal Party vice-chairwoman Selina Chow Liang Shuk-yee said the party had reluctantly supported the proposal.

'It may affect the charges of nearby private car parks,' she said. 'On-street parking meters are for temporary use only. The Government should increase inspection to prevent vehicles occupying the on-street parking spaces too long.'

However, Liberal Party chairman James Tien Pei-chun said on-street parking spaces were for temporary use and they should not pose a threat to private car parks, which were used for long-term parking.

The Government had promised to limit the fee rises to certain areas - Tuen Mun, Yuen Long, Tsuen Wan and Yau Ma Tei, Tsim Sha Tsui and Mongkok - this financial year in a bid to win support for the proposal.

'We are only raising the fees selectively,' Ms Yue said.

By raising the charges, it would free up more on-street parking spaces. Otherwise, vehicles moving around looking for parking spaces would increase traffic congestion, Ms Yue added.

The rejected increases were part of a package of Budget revenue proposals voted on by Legco yesterday.

The other four were all passed. These included increasing the tax from 30 per cent to 40 per cent on drinks with an alcoholic strength of less than 30 per cent.

A five per cent rise in tobacco duty was also approved.

Air passenger departure tax will be increased from $50 to $80 and will be extended to cover helicopter passengers.

The maximum amount of allowable deductions for self-education expenses will be raised from $30,000 to $40,000.

Liberal Party legislator Miriam Lau Kin-yee, who represents the transport sector, and non-affiliated member Margaret Ng Ngoi-yee opposed the extension of air passenger departure tax to helicopter passengers.

They said it needed more thorough discussion.



Treasury secretary warns lawmakers that lost revenue will drive budget further into deficit