A registered distributor of vehicles was convicted today (April 11) by the Eastern Magistracy for contravening the Motor Vehicles (First Registration Tax) Ordinance (Ordinance), and fined $610,000.
During the period of May to July 2011, the offending vehicle company sold three private cars at a total cost of $1.6 million, which was $520,000 higher than the Published Retail Price approved by the Customs.
The Customs spokesman said, the company concerned sold the vehicles at prices higher than the Published Retail Price approved by the Customs, and tacitly covered up the raised prices with some claimed club membership fees to mislead the consumers in order to gain higher benefits.
The Customs welcomes the court's rulings, noting that the penalty is the highest imposed so far on similar cases and serves sufficient deterrence. It also serves to protect consumer interest.
According to the Ordinance, companies importing vehicles for selling locally are required to submit the price information of the vehicles to the Customs to facilitate the Department in approving the Published Retail Price of the vehicles. The First Registration Tax of a vehicle is calculated according to the Published Retail Price and the company should not raise the retail price when selling the vehicle.
The company has to re-submit the application to Customs for a new Published Retail Price if there is any change to the retail price of the vehicle put on sale; otherwise, the company will contravene the law.
The Customs advises members of the public who plan to buy new vehicles should ask the distributor for a Published Retail Price list for reference. The buyer can verify the retail price with the Customs and Transport Department should there be any doubt.
Under the Ordinance, it is an offence for selling a new motor vehicle at a price higher than the Published Retail Price without the consent of Commissioner for Transport. Offenders convicted are liable to a fine of $500,000 and imprisonment for 12 months.
Ends/Wednesday, April 11, 2012