As a not-for-profit making organization representing the motorists of Hong Kong, the Hong Kong Automobile Association is concerned about the impact of high oil price on the well-being of private car owners, drivers and transport industry. During days of rising inflation, this further adds to their already heavy financial burden. On behalf of 12,000 private car owners, HKAA President Wesley Wan wrote to Financial Secretary Hon John Tsang Chun-wah and urged government to pay attention to the problem of high oil price and to resolve the difficulty which vehicle owners and the transport industry are facing. The Hong Kong Automobile Association also urges that member of Legislative Council Hon Miriam Lau Kin-yee, JP, considers reducing fuel duty and exempting diesel duty as measures to alleviate the pressure of private car owners.
Oil price constantly stays high in the midst of inflation. As fuel duty accounts for a very large part of oil fees, this further adds to the heavy burden of vehicle owners and drivers.
On behalf of 12,000 private car owners, the Hong Kong Automobile Association urges that the Government pay attention to the problem of high oil price and to resolve the difficulty which car owners and the transport industry are facing. The Government has been encouraging the use of public transport whenever possible for environmental conservation, hence levying a duty on gasoline. The existing transportation system, however, is unable to accommodate enormous public demand, explaining why the number of vehicles has not dropped as a consequence. In addition, urban planning has induced migration from urban areas to the New Towns where public transport network has yet to be well-developed. For ordinary families, the ownership and use of private cars has become a basic need, and they are inevitably pressurized by the high oil price.
Apart from private car owners, expensive oil directly impinges on the survival of businesses which provide vehicular services; for example, hotels which pick up clients with private vehicles, and some small-medium enterprises which use private vehicles as transportation tools. High oil prices may also boost inflation and hence interest rates, or result in capital outflow which also deals an equally great blow to our economy. Eventually, businesses will raise prices and shift the rising energy cost, which can no longer be offset by profit, to consumers and the general public, whose well-being will then be put to jeopardy.
In view of fiscal surplus, the Government is now adopting the policy of “returning wealth to the people” by means of tax reduction. The middle class has been contributing to the society and deserves a helping hand from the Government in times of difficulty. Duty on red wine has already been reduced and the next target should be fuel.
The Hong Kong Automobile Association appeals that the Government should promptly consider reducing fuel duty and exempting diesel duty as measures to alleviate the pressure of private car owners. Adequate subsidies such as reducing or exempting first registration tax for vehicles and adjustment on land duty for oil companies could be other considerations to reduce the chance that they transfer operational costs to consumers. Most importantly, all parties should stay calm and seek consensus on feasible solutions to the problem.
