Legislative Council

LC Paper No. LS 9/98-99


Paper for the House Committee Meeting
of the Legislative Council
on 10 July 1998

Legal Service Division Report on
Resolution under section 4(2) of the Dutiable Commodities Ordinance
(Cap. 109)



The Secretary for Treasury has given notice to move a motion under section 4(2) of the Dutiable Commodities Ordinance (Cap. 109) (the Ordinance� at the Legislative Council meeting to be held on 22 July 1998. The purpose of the motion is to seek the Legislative Council approval to reduce the duty payable on light diesel oil from the existing duty of $2.89 per litre to $2.00 per litre from 23 June 1998 to 31 March 1999.

2. The duty payable on light diesel oil is set out in Part III of Schedule 1 to the Ordinance. Under section 4(2) of the Ordinance, the Legislative Council may by resolution amend Schedule 1 by, inter alia, increasing, decreasing, recasting or varying whether generally or particularly any duty imposed in Schedule 1 to any extent.

3. Members may recall that the reduction of the duty payable on light diesel oil is one of the measures announced by the Government on 22 June 1998 to help the community in the current economic adjustment. Interim effect has been given to the reduction by the Public Revenue Protection (Dutiable Commodities) (No. 2) Order 1998 (L.N. 249 of 1998) (the Order) made under the Public Revenue Protection Ordinance (Cap. 120). The Legal Service Division has prepared a report setting out the legal effect of the Order (LC Paper No. LS 5/98-99 refers). A copy of the said paper is annexed for Members�reference.

4. If passed, the resolution will replace the Order and give effect to the reduction of duty payable on light diesel oil from $2.89 per litre to $2.00 per litre for the remaining period of the current financial year. The resolution also provides that the duty rate of $2.89 per litre will be resumed on 1 April 1999.

5. The legal and drafting aspects of the resolution are in order.


Encl.


Prepared by

Fung Sau-kuen, Connie
Assistant Legal Adviser
Legislative Council Secretariat
6 July 1998

Annex



Legislative Council

LC Paper No. LS 5/98-99


Legal Service Division Report on
Public Revenue Protection (Dutiable Commodities) (No. 2) Order 1998 under
Public Revenue Protection Ordinance (Cap. 120)
(L.N. 249 of 1998 Gazetted on 22 June 1998)

The Public Revenue Protection (Dutiable Commodities) (No. 2) Order 1998 was made by the Chief Executive after consultation with the Executive Council under section 2 of the Public Revenue Protection Ordinance (Cap. 120) (the Ordinance). This Order is an interim measure taken under the Ordinance to give effect to one of the nine new measures to revive the economy of Hong Kong as announced by the Government on 22 June 1998, namely, the reduction of the duty payable on light diesel oil. The Resolution giving effect to this new measure for the remaining period of the current financial year will be introduced into the Legislative Council following the usual legislative procedures.

2. Under section 2 of the Ordinance, this Order, so long as it remains in force, has the full effect of law. Section 5(2) provides that such Order shall expire and cease to be in force -

  1. upon the notification in the Gazette of either the rejection by the Legislative Council or the withdrawal of the resolution in respect of which the Order was made; or

  2. upon enactment as law in the ordinary manner of the resolution (with or without modification); or

  3. upon the expiration of 4 months from the day on which the Order came into force,

whichever event first happens.

3. Under section 7 of the Ordinance, if this Order ceases to be in force and is not replaced, with or without modification, by the resolution in respect of which it was made, the duty, tax, fee, rate or other item of revenue which was payable immediately before the coming into force of the Order shall thereupon again become payable in full.

4. This Order gives interim effect as from 23 June 1998 to a Resolution to be introduced into this Council. The Resolution, as set out in the Schedule to the Order, seeks to amend Schedule 1 to the Dutiable Commodities Ordinance (Cap. 109) by reducing the duty payable on light diesel oil from the existing duty of $2.89 per litre to $2.00 per litre as from 23 June 1998. The reduction in duty will remain in effect until 31 March 1999.

Prepared by


Fung Sau-kuen, Connie
Assistant Legal Adviser
Legislative Council Secretariat
2 July 1998