• 204 days Could Crypto Overtake Traditional Investment?
  • 209 days Americans Still Quitting Jobs At Record Pace
  • 211 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 214 days Is The Dollar Too Strong?
  • 214 days Big Tech Disappoints Investors on Earnings Calls
  • 215 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 217 days China Is Quietly Trying To Distance Itself From Russia
  • 217 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 221 days Crypto Investors Won Big In 2021
  • 221 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 222 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 224 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 225 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 228 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 229 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 229 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 231 days Are NFTs About To Take Over Gaming?
  • 232 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 235 days What’s Causing Inflation In The United States?
  • 236 days Intel Joins Russian Exodus as Chip Shortage Digs In
Oilprice.com

Oilprice.com

Writer, OilPrice.com

Information/Articles and Prices on a wide range of commodities: We have assembled a team of experienced writers to provide you with information on Crude Oil,…

Contact Author

  1. Home
  2. Commodities
  3. Energy

Hong Kong Makes Buying EVs More Attractive

HK

Hong Kong is introducing a new tax benefit for residents buying an electric car that would make EVs cheaper, as it tries to encourage battery-powered cars usage and at the same time ease some of the heavy traffic on its roads.

Under the 2018-2019 budget unveiled on Wednesday, Hong Kong is introducing a new ‘One-for-One Replacement’ Scheme starting today and running until March 31, 2021. Under the new initiative, private car owners who want to scrap and deregister their eligible old vehicle—either a car with an internal combustion engine or an EV—will get a waiver of up to 250,000 Hong Kong dollars from the first registration tax (FRT) on the new EV.

Hong Kong will also keep an existing waiver of up to 97,500 Hong Kong dollars from April 1, 2018, to March 31, 2021, for the first registration tax.

Hong Kong will continue to waive in full the first registration tax on all other types of EVs—electric commercial vehicles, electric motorcycles, and electric motor tricycles—from April 1, 2018, to March 31, 2021.

“As for e-PCs [electric private cars], 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,” a spokesman for Hong Kong’s Environment Bureau (ENB) said in today’s statement on the EVs tax benefits. Related: The Morning After: Dow Starts To Regain Post-Powell Losses

Last year, Hong Kong’s government was criticized—including by Tesla—for stifling the growth of EV sales after it scrapped a tax exemption on electric cars in order to fight traffic congestion. The tax on EVs was expected to raise car prices by at least 50 percent.

Earlier this month, Mark Webb-Johnson, chairman at Charged Hong Kong, a local group supporting the adoption of EVs, sent an open letter to the Chief Executive of the Hong Kong administrative region, Carrie Lam, in which he criticized last year’s capping of the EV tax incentives and said that EV sales plunged by 95 percent in 2017 compared to 2016, while overall private car growth was 4 percent.

“Buyers have simply switched back to buying polluting petrol and diesel vehicles,” Webb-Johnson said, and urged the administration to “follow the lead set by other countries around the world and set a clear date by which no new petrol/diesel vehicles will be registered.”

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment