Taxing polluters

There are six days to Budget day, but panic week could be starting any time now. That is the interval where people try to guess the tax miseries ahead, and rush out to try to avoid them.

Last year, when rumors circulated that Financial Secretary Donald Tsang Yam-kuen would announce a 60 percent rise in vehicle license fees, queues formed outside Transport Department offices hours before opening. Transport Commissioner Robert Footman's announcement yesterday of a four-month grace period for renewal is primarily aimed at avoiding a repeat of the chaos, but many are already taking it as a broad hint that car owners will be hit in the pocket next Wednesday.

They may be right. Although only 14 percent of households own a car, they would be an easy target. The owners are comparatively well off and their vehicles evidently contribute to pollution. Since the government must find ways to increase revenue and an environmentally friendly transport system needs to be devised because pollution damages the economy, focusing on the owners becomes an attractive proposition.

But if extra tax is to be raised from drivers, there are better ways to go about it. It could be done through a solution suggested in Chief Executive Tung Chee-hwa's October Policy Address. Mr. Tung said an electronic road pricing (ERP) scheme would be re-examined, not to raise revenue but to reduce emissions and cut down traffic congestion.

In fact, ERP could be a more effective revenue earner than increasing the license fee. More importantly, it would be fairer, affecting only those who ventured into the inner-city areas. Hong Kong is supposed to be committed to "polluter pays", and this is an obvious case for implementation.

The Government should ignore the critics and press on with the scheme.

-- The South China Morning Post, Hong Kong