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Following is the speech by the Secretary for Financial Services and the Treasury, Mr Frederick Ma, in moving the resolution to extend the exemption for electric vehicles from first registration tax in the Legislative Council today (March 19):

Madam President,

I move that the third motion under my name, as printed on the Agenda, be passed to extend the existing exemptions for electric vehicles from first registration tax for three further years, that is, from April 1, 2003 to March 31, 2006.

The Financial Secretary announced in his Budget Speech on March 5 that in order to continue promoting the use of electric vehicles, the Government had proposed to extend the exemptions for these vehicles from first registration tax for a further three years. The resolution moved by me today is to implement the Financial Secretary's proposal.

The Government first granted the exemption in 1994-95 and extended it in 1997-98 and again in 2000-01. To continue encouraging the use and development of these environmentally-friendly vehicles, we propose to extend the first registration tax exemption for another three years to March 31, 2006. This concession is estimated to reduce government revenue by $400,000 in a full year.

Madam President, I hope Members will support the resolution.

End/Wednesday, March 19, 2003

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