Leung Faces No-Confidence Vote Over Car Tax Row

by Mary Swire, Tax-News.com, Hong Kong

08 May 2003

Antony Leung, Hong Kong's Minster of Finance, is facing a vote of no confidence this week, over the scandal which erupted when it emerged that he had bought a luxury car just six weeks before introducing a new tax on such vehicles in his budget.

Reports from the territory earlier this year described how Leung purchased a Lexus LS430 worth US$96,000, which would have cost him an extra US$6,400 in first registration tax, had the purchase been made after his budget in March.

Commentators in the region however, doubt that the no-confidence vote, introduced by an independent legislator, will attract enough support to jeopardise Leung's position in the government. Nevertheless, it has caused the present administration some embarrassment, and there have been repeated calls for the minister's resignation, with critics citing a conflict of interest.

Leung has insisted the timing of the purchase was an honest oversight, and has since donated double the amount he is alleged to have saved to charity.

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