New arrangements for first registration tax concessions for electric vehicles
(a) For electric private cars (e-PCs), a tiered structure will be implemented:
(i) except for eligible private car (PC) owners (see (a)(ii) below), FRT for e-PCs will continue to be waived up to $97,500 from April 1, 2018, to March 31, 2021, as at present; and
(ii) a new "One-for-One Replacement" Scheme will run from today to March 31, 2021 (both dates inclusive), allowing PC owners who arrange to scrap and deregister their own eligible old PC (Old PC) (PC with an internal combustion engine or e-PC) and then first register a new e-PC (Replacement e-PC) to enjoy a higher FRT concession of up to $250,000.
(b) For other types of electric vehicles (i.e. electric commercial vehicles, electric motorcycles and electric motor tricycles), their FRT will continue to be waived in full from April 1, 2018, to March 31, 2021.
A spokesman for the ENB said, "The Financial Secretary has announced in the Budget Speech today that, taking into account factors such as the technological development and market situation of electric vehicles, road traffic considerations, and views from various stakeholders, the Government has decided to continue to waive in full the FRT for electric commercial vehicles, electric motorcycles and electric motor tricycles until March 31, 2021. As for e-PCs, on one hand, the Government has to control the growth of PCs to prevent aggravating traffic congestion and roadside air pollution, and on the other hand it also hopes to encourage car owners to go for electric vehicles as far as possible when purchasing PCs. As such, apart from continuing with the current FRT concession up to $97,500, the Government has introduced the new 'One-for-One Replacement' Scheme from today to allow eligible PC owners who buy a new e-PC and arrange to scrap an eligible Old PC they own to enjoy a higher FRT concession of up to $250,000. The above concessions will remain in force until March 31, 2021."
The spokesman added, "To join the 'One-for-One Replacement' Scheme, a PC owner should first arrange to scrap his or her Old PC and deregister it at the Transport Department (TD). After completing the deregistration of the Old PC, the owner of the Replacement e-PC (in case the Replacement e-PC is imported by the owner) or the registered distributor selling the Replacement e-PC concerned should submit to the TD the application for the first registration of the Replacement e-PC under the name of the Old PC owner and apply for the above-mentioned higher FRT concession for the Replacement e-PC under the 'One-for-One Replacement' Scheme." The eligibility criteria for the Scheme are listed in the Annex.
The spokesman also reminded PC owners to check the details of application for the "One-for-One Replacement" Scheme before scrapping their Old PC. The details of application for the "One-for-One Replacement" Scheme, including the eligibility criteria and other application details, will be uploaded to the TD website (www.td.gov.hk) later today.
For enquiries, please contact the TD's Hong Kong Licensing Office at 2804 2270.
Ends/Wednesday, February 28, 2018
Issued at HKT 12:39
Issued at HKT 12:39