The Financial Services & the Treasury Bureau estimates the average auction price for personalised vehicle registration marks will be between $20,000 and $25,000, bringing about $70 million in annual revenue. The net proceeds will be used for poverty-alleviation initiatives.

The Bills Committee on the Revenue (Personalised Vehicle Registration Marks) Bill 2005 discussed today the impact of the proposed personalised vehicle registration marks scheme to the existing auctioned vehicle registration marks scheme and the Lotteries Fund.

The bureau said the average price of auctioned vehicle registration marks in 2004-05 remained stable despite the announcement of the proposed personalised vehicle registration marks scheme in March last year. The average price was $16,532, compared to $16,071 in 2003-04.

The average prices for special and ordinary vehicle registration marks also remained at similar levels in 2004-05 compared to 2003-04. The prices in 2004-05 were $58,575 and $6,606 while in 2003-04 were $58,090 and $6,497. The figures show the existing auctioned scheme continues attract considerable interest.

Impact minimal

Regarding the proposal's impact on the Lotteries Fund, the bureau said the fund has different sources of revenue, with proceeds from the auctioned scheme only accounting for around 6% to 7%.

According to results of a sensitivity analysis based on the 2003-04 figures, a 5% drop in the auction proceeds of vehicle registration marks will translate into only a 0.3% dip in the overall revenue of the Lotteries Fund.

The bureau expects any effect of the proposed personalised vehicle registration marks scheme on the auction proceeds of ordinary and special vehicle registration marks will be insignificant.

The effect in turn on the overall income of the Lotteries Fund, if any, will also be minimal.