A driver doing burnouts in the Birchalls car park in Paterson Street about 3am Saturday morning has been captured on video and police are investigating.
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The driver damaged at least one sign and left obvious skid marks in the car park.
A The Examiner reader, who took the video, said the driver was driving in a dangerous fashion and doing "reverse doughnuts for a full two minutes".
A Tasmania Police spokesperson said a man was injured in the incident.
"In the early hours of February 1 police were contacted in relation to a motor vehicle driving erratically in the car park on Paterson Street, Launceston," they said.
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"The vehicle is alleged to have crashed, caused damage to a parking voucher machine before striking a pedestrian and leaving the scene."
A 49-year-old Waverley man was taken into custody in relation to the offences and is due to appear in court at a later date.
A 20-year-old Newnham man was transported to the Launceston General Hospital with minor injuries.
People who witnessed the incident who have not yet spoken to police are encouraged to come forward. Additional video evidence of the offences is also sought by police.
Information can be provided to members of the Launceston Police Station or anonymously via Crime Stoppers on 1800 333 000.