| 56. |
Diesel
tax is imposed on taxis to close the gap between
the fuel cost of diesel-powered taxis and
petrol-powered private cars. As part of the
off-budget package in 2001, I reduced the
diesel tax for taxis from $5,100 to $4,700.
In the Budget Statement this year, I extended
the reduction by six months, till the end
of 2003. I will now extend this reduction
by another six months, till 30 June 2004.
This will cost the Government about $4 million.
The $2,000 diesel tax rebate granted as part
of the SARS Relief Package will, however,
not be extended beyond 31 December 2003 as
the earnings of taxi drivers are now back
to pre-SARS levels. |
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