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In response to media enquiries about the transport industry's request to reduce or abolish the duty on ultra low sulphur diesel (ULSD), a spokesman for the Financial Services and the Treasury Bureau said today (August 22) that ULSD was a significant and stable source of revenue for the Government. The present concessionary duty of $1.11 per litre is about 60% less than the original rate of $2.89 per litre. Should this duty be further reduced, it would affect Government revenue.
"We have extended the concessionary rate of $1.11 per litre on seven occasions. The existing concessionary duty on ULSD will remain up to the end of December 2006," the spokesman said.
"Taking into account the transport industry's request, if, as a result of the review at the end of this year, we consider that the ULSD duty should be maintained at its current level, we will propose extending the concessionary rate for two years until the end of December 2008."
Ends/Tuesday, August 22, 2006
Issued at HKT 19:28
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