A motor vehicle distributor was fined $440,000 at the Kowloon City Magistrates' Courts today (October 3) for selling a motor vehicle at a price higher than the permitted "Published Retail Prices" (PRP), contravening the Motor Vehicles (First Registration Tax) Ordinance (the Ordinance).
The offending vehicle company, with a registered address in Kowloon City, sold a motor vehicle at a price higher than the permitted PRP to a customer in February 2011. The vehicle was sold at $1.88 million, which was approximately $400,000 higher than the PRP approved by the Customs and Excise Department (C&ED).
A C&ED spokesman said that the offending vehicle trader raised the PRP without applying for approval from the department in order to gain a higher profit. The buyer paid a higher amount of money than the PRP when purchasing the vehicle in question, suffering a monetary loss.
The C&ED attaches importance to illegal activities involving motor vehicle distributors' application for the PRP by submitting a relatively lower retail price to evade paying a higher first registration tax.
Apart from initiating verification against PRP application by inspecting the vehicles, the department will also conduct investigations upon reports received from members of the public. Prosecutions will be made if there is sufficient evidence.
Under the Ordinance, it is an offence to sell a new motor vehicle at a price higher than the PRP without the consent of Commissioner for Transport. Offenders convicted are liable to a fine of $500,000 and imprisonment for 12 months.
Members of the public who plan to buy new vehicles should ask the distributor to provide a PRP list for reference. Should there be any doubt about the price of vehicles, enquiries and reports can be made on the Customs hotline 2545 6182.
Ends/Wednesday, October 3 2012