Two motor vehicle distributors were fined a total of $913,000 at Kowloon City Magistracy today in two separate cases for selling new vehicles at prices higher than the permitted Published Retail Prices, contravening the Motor Vehicles (First Registration Tax) Ordinance.

One trader was fined $844,000 for four vehicle transactions, the highest penalty in such cases so far. The other was fined $69,000.

The two companies, in To Kwa Wan and Yau Ma Tei, sold three and four motor vehicles at prices higher than the permitted price from November 2010 to February 2011. 

The vehicles' cost amounted to $1.8 million, $550,000 higher than the retail prices approved by the Customs & Excise Department.

The department said the private cars involved were sold at a retail price range of $100,000 to $500,000. The traders raised the price without applying for the department's approval.

Under the ordinance, it is an offence to sell a new motor vehicle at a price higher than the permitted one without the Commissioner for Transport's consent. Offenders convicted are liable to a $500,000 fine and a year in prison.

New vehicle buyers should ask the distributor to provide a permitted Published Retail Prices list for reference. 

When in doubt, call the Customs hotline, 2545 6182.