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Following is the transcript (English part) of a media session given by the Financial Secretary, Mr Donald Tsang, after officiating at the KCRC West Rail Track Laying Ceremony today (October 4):

Question: (on oil price and fuel tax)

Financial Secretary: As far as our fuel tax is concerned, you might wish to know that it is among the lowest in the world. We are comparing our fuel tax in terms of diesel, which is the most important element as far as economic activities are concerned. Because it affects our truck drivers, it affects our taxi drivers, it affects generally those people relying on transport as their livelihood. The sort of duty prevailing now in most industrialised nations in the world, in the Western World, they are running at tax rate of 50%, 60%, some running close to 70%. As far as Hong Kong is concerned, the duty level is now at 17%, which is probably the lowest among all industrialised nations. But I'm critically concerned of this matter. We're certainly monitoring prices very closely. I think the Administration has done all it can throughout these years, particularly during the Asian Financial Crisis, to help ease the burden on the truck drivers. We'll continue to do the same but we must remember duty from fuel is an important contributor to overall government revenue. We must not vary tax rate lightly. But this is a matter of community concern, certainly the Administration will watch the movement very carefully.

(Please refer to the Chinese part also.)

End/Wednesday, October 4, 2000

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