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| Extending the Duty Concession for Ultra Low Sulphur Diesel |
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| 78.
The duty on ultra low sulphur diesel is a steady source of revenue. Several years ago, the Government introduced the concessionary rate of $1.11 per litre for ultra low sulphur diesel to encourage the transport industry to switch to cleaner fuel. We have subsequently extended the concession on several occasions, having regard to the impact of a weakening economy on the industry. The concession is to expire at the end of this month and the duty rate is due to revert to $2.89 per litre thereafter. |
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| 79.
Although the economy has started to recover, the transport industry and other related sectors still face many difficulties. I have therefore decided to extend the concession for ultra low sulphur diesel to the end of this year. Until then, the duty rate will remain at $1.11 per litre. This proposal will cost the Government nearly $0.9 billion in 2004-05. |
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