***********************
Following is a question by the Hon Audrey Eu and a written reply by the Secretary for the Environment, Mr Edward Yau, in the Legislative Council today (November 26):
Question:
Since the 1994-1995 financial year, the Government has exempted motor vehicles which are propelled solely by electric power and do not emit any exhaust gas (electric vehicles) from first registration tax, so as to encourage vehicle owners to buy such vehicles. In this connection, will the Government inform this Council:
(a) of the amount of tax revenue foregone in the past three financial years as a result of exempting electric vehicles from first registration tax;
(b) of the number of electric vehicles newly registered in the past two years; and
(c) apart from exemption from first registration tax, what measures the Government had adopted in the past two years to encourage more vehicle owners to buy electric vehicles?
Reply:
President,
(a) According to the Transport Department's record, there were 31 newly registered electric vehicles in Hong Kong in the past three financial years. The first registration tax forgone was $105,000.
(b) There were 23 newly registered electric vehicles in the past two financial years.
(c) At present, the first registration tax rates for private cars range from 35% to over 85% of the selling price. For a private car selling at $150,000, the first registration tax payable is $52,500. The first registration tax rate increases with the selling price of a private car. If the selling price of a private car is $300,000, the first registration tax payable accounts for 50% of its selling price. As far as economic consideration is concerned, exempting the first registration tax of electric vehicles can provide the necessary impetus to encourage car owners to use electric vehicles.
Apart from exempting the first registration tax of electric vehicle, we also encourage vehicle manufacturers to bring in early to the local market suitable electric vehicle models that can satisfy vehicle owners' needs. At present, electric vehicles remain unpopular with vehicle drivers mainly as they suffer from long charging time for the battery and short driving range afforded by each charging as compared with each refilling of conventional vehicles. Moreover, vehicle owners are also concerned about the durability of their batteries. Electric vehicle manufacturers are endeavouring to overcome these technical hurdles. Should they be able to introduce early to the local market electric vehicles that could meet the practical needs of drivers, it will give the decisive push for promoting the use of electric vehicles.
Ends/Wednesday, November 26, 2008
Issued at HKT 12:59
NNNN