Govt Relaxes Tax Rebate Scheme For Electric Cars

The government has relaxed the much criticised eligibility criteria of a rebate scheme that aims to encourage drivers to replace their cars with electric ones.

The "One-for-One Replacement" Scheme was launched in February last year, offering a tax concession of up to HK$250,000 if vehicle owners scrap their old cars and switch to electric cars. But the eligibility criteria had attracted flak as some found the requirements too restrictive.

Up until December last year, the scheme had attracted only 321 people, according a statement the Transport Department submitted to Legco.

The scheme had stipulated that people must have owned the old cars for at least three years to be eligible.

Moreover, under the original guidelines, the old car needed to have had a valid licence for the previous 20 months before it was to be scrapped.

Now the government has cut the minimum ownership requirement to one and a half years, while the car licence period has been reduced to 10 months.

A government spokesman said the authorities have taken into account views from the public about the scheme and they hope more car owners will be eligible for the tax concessions.

The scheme will run until March 31, 2021.