|
Press Release
Concessionary duty rate for Euro V diesel to start from tomorrow
The concessionary duty rate of $0.56 per litre for Euro V diesel will come into force tomorrow (December 1) for two years.
A spokesman for the Environmental Protection Department said today (November 30) that the concessionary duty rate served as a fiscal incentive to fuel suppliers to advance the availability of Euro V diesel in the local market and to drivers to use this more environmentally friendly fuel.
Euro V diesel is suitable for all existing diesel vehicles. As compared with ultra-low sulphur diesel (ULSD), which is the current statutory minimum requirement for motor vehicle diesel, fuelling existing diesel vehicles with Euro V diesel can reduce their sulphur dioxide and particulates emissions by 80% and 5% respectively.
"To further improve roadside air quality, it has been our established policy to introduce and promote the use of cleaner fuel as far as practicable," the spokesman added.
In the first eight months of this year, about 40% of the motor vehicle diesel imported to Hong Kong met the specifications of Euro V diesel. Based on the import diesel prices for the period, Euro V diesel was more costly than ULSD by up to about $0.1 per litre.
"The concessionary duty rate of $0.56 per litre for Euro V diesel, which is about half the concessionary duty rate for ULSD, will make it more price-competitive than ULSD. While the future price differential between the two types of fuel will be subject to market factors such as supply and demand, all the major fuel suppliers have undertaken to duly reflect the duty concession when pricing Euro V diesel," the spokesman said.
The Government plans to make Euro V diesel the statutory requirement for motor vehicle diesel from January 1, 2009, in tandem with the European Union. Before doing so, the concessionary duty rate arrangement will be reviewed.
The concessionary duty rate of $1.11 per litre for ULSD will continue until December 31, 2008, and the rate will be restored to $2.89 per litre from January 1, 2009.
Ends/Friday, November 30, 2007
|
