New First Registration Tax Concessions for Electric Vehicles First registration tax (FRT) concessions for electric vehicles (EV) for the period from 1 April 2017 to 31 March 2018 inclusive are as follows – i) electric private cars: their FRT will be waived up to $97, 500; and ii) electric commercial vehicles (including goods vehicles, buses, light buses, taxis, and special purpose vehicles), electric motor cycles and electric motor tricycles: their FRT will be waived in full. As a one-off arrangement, electric private cars ordered by buyers from local registered distributors or arranged for shipment to Hong Kong by owners before 11:00 a.m. on 22 February 2017 (Hong Kong time) will still be entitled to have their FRT fully waived even if they are first registered after 31 March 2017. The details of the application for an FRT full waiver for electric private cars under the one-off arrangement, including the application procedures and supporting documents required are available at the Transport Department (TD)'s website. For enquiries, please call the TD's Hong Kong Licensing Office at 2804 2634.

Background

Electric vehicles (EVs) have no tailpipe emissions. Replacing conventional vehicles with EVs can help improve roadside air quality and reduce greenhouse gas emissions. A wider use of EVs also contributes to the development of environmental industries.

The Finance Secretary chairs a Steering Committee on the Promotion of EVs with members drawn from various sectors to recommend a strategy complementary with specific measures to promote the use of electric vehicles in Hong Kong, having regard to the resulting energy efficiency, environmental benefits and the creation of business opportunities.

Government’s Measures to Promote the Use of
Electric Vehicles

The Government has been promoting the use of EVs by the following measures –

1. Offering first registration tax (FRT) concessions for EVs. During the period from 1 April 2017 to 31 March 2018 inclusive, the FRT on electric commercial vehicles, electric motor cycles and electric motor tricycles will be fully waived, and electric private cars will have their FRT waived up to $97, 500. Furthermore, enterprises which procure EVs are allowed 100% profits tax deduction for the capital expenditure on EVs in the first year of procurement.
2. to encourage the public transport trades, goods vehicle operators and non-profit-making organizations to try out green innovative and low carbon transport technologies (including EVs).
3. The ultimate policy objective of the Government is to have zero emission buses running across the territory. To this end, the Government allocated $180 million for franchised bus companies to purchase 36 single-deck electric buses for trial runs to assess their operational efficiency and performance under the local conditions. The first batch of five battery-electric buses has commenced operation by end 2015. In late March 2017, two more supercapacitor buses commenced the trial. The remaining electric buses are expected to be put into service progressively in 2017.