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The Environmental Protection Department (EPD) today (February 24) announced that the tax incentive scheme for environment-friendly petrol private cars will be terminated on April 1, 2015.
"It has been a standing arrangement of the EPD to conduct an annual review of the scheme, with the outcome being implemented in the following April. The reviews have principally considered vehicle technological advancements and the prevailing statutory emission standards with a view to restricting the tax incentive to vehicles with outstanding emission performance and fuel efficiency," a spokesman for the EPD said.
"Over the years, the emission control technology of petrol private cars has advanced to such a mature stage that further emission reduction is limited. The Euro 6 emission standard for petrol private cars, which the European Union plans to introduce by September 2015, will have the same emission limits for nitrogen oxides and hydrocarbons, which are key pollutants emitted by petrol vehicles, as the Euro 5 standard. We have thus decided to terminate the scheme," he explained.
"Once the incentive scheme is terminated, petrol private car models in compliance with the current qualifying standard will lose with immediate effect their eligibility for the first registration tax (FRT) concession," the spokesman added.
The Government remains committed to promoting wider use of electric vehicles, for which the FRT is waived till March 31, 2017.
The tax incentive scheme for environment-friendly private cars was launched on April 1, 2007, to encourage vehicle buyers to choose environment-friendly car models. Information on the tax incentive scheme is available at the following EPD webpage: www.epd.gov.hk/epd/english/environmentinhk/air/prob_solutions/environment_friendly_private_cars.html.
Ends/Tuesday, February 24, 2015
Issued at HKT 17:30
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