A registered motor vehicle distributor was fined $972,000 today (September 27) at the Eastern Magistrates' Courts for selling motor vehicles at a price higher than the published retail price approved by the Customs and Excise Department (C&ED) and contravening the Motor Vehicles (First Registration Tax) Ordinance.
The offending vehicle company was prosecuted for selling 81 seven-seater private cars at a price higher than the "Published Retail Price" approved by the C&ED from September to November 2012. The total sales proceeds in excess of the approved amount reached up to $550,000.
In accordance with the Ordinance, all registered vehicle distributors shall, before offering a motor vehicle for sale for use in Hong Kong, deliver a "Published Retail Price" to Customs for assessment, which will form the basis for calculating the First Registration Tax. The law also stipulates that vehicle distributors shall, upon receipt of the approved published retail price, publish in writing the relevant price for protecting the interests of consumers.
A vehicle distributor that, without obtaining prior consent of the C&ED, sells a motor vehicle at a price higher than the approved retail price commits an offence and will be liable to a maximum fine of $500,000 and imprisonment for 12 months upon conviction.
A C&ED spokesperson said that the court's penalty in this case accords deterrent effect and helps protect the interests of consumers.
The spokesperson advised members of the public to ask the distributor for a "Published Retail Price" list for reference when considering to buy a new vehicle. They may call the Customs Hotline 2545 6182 for enquiries on the approved vehicle price.
Ends/Friday, September 27 2013