E-car Buyers Get Discount, With Strings Attached

Financial Secretary Paul Chan on Wednesday announced a HK$250,000 rebate in the first registration tax for new electric cars – but the offer comes with some conditions.

The government introduced a cap of HK$97,500 last year on a first registration tax rebate, dealing a heavy blow to electric car sales in the city after an earlier exemption from the tax.

Chan has now raised the rebate to HK$250,000, but only if people scrap their old cars and cancel their registration.

These vehicles can run on gas, diesel, electricity, or be a hybrid – but they must be at least six years old, and the applicant must have owned the car for at least three years without interruption to be eligible.

For drivers who don't have a car to scrap, the government will continue to offer a maximum tax concession of up to HK$97,500 for purchases of eligible electric vehicles.

Chan said the change strikes the right balance. "To us, a subsidy of a quarter of a million is not a small sum, and we do think this is the right amount to be given. Otherwise the used cars in the garage may be used as another trade item," he said.

But the secretary said first registration taxes will continue to be waived in full for electric commercial vehicles, electric motorcycles and electric motor tricycles as a way to reduce pollution.