Total agree. If there has to be FRT on Evs, so be it, but keep the difference in FRT between ICEs and EVs like it is now.
Total agree. If there has to be FRT on Evs, so be it, but keep the difference in FRT between ICEs and EVs like it is now.
It will be announced during the budget speech early in 2017. If they choose to extend/modify, it will have to be approved by LegCo.
One point to add is that it'll be announced earlier in the year during the budget speech, but should the govt. decides on the tax hike, it'll become effective almost immediately from Apr and onwards car rego. even before the LegCo vote which happens later in the year (and this is a formality only)... I found this out at my expense when buying another car a few years back : (
If the government decides to revert to full FRT for EVs, there doesn't even need to be a vote in LegCo. In fact, if nothing is done, full FRT comes back on 1st April 2017 automatically.
While i dread the thought of that happening, I would be eager to see how that will impact 2nd hand Model S prices.
Denmark has gone down that route, unfortunately. In 2015, about 2,800 Teslas were sold, while the first three months of 2016 - one 2 (two) Teslas were sold in Denmark. A handful of cheaper EVs were sold, since the Danish FRT is much more progressive than the HK equivalent.
This is how the Danish equivalent of FRT is phased in for EVs. It probably makes a bit sense - it's just 10 years too early, should have been 2026-2030, not 2016-2020.
100% means 100% of the Danish FRT, which starts at 180% plus 25% sales tax. Yes, the sales tax is also applied to the 180%, so it's tax on tax.
The worst part of it is the uncertainty. Obviously, it's totally wrong to tax EVs this much, when the entire world agrees that CO2 and fossil fuel combustion must be slashed. Denmark is at the top with renewable energy, with more than 40% of electricity in 2015 coming from wind turbines. And that share increase every year on. Really silly that they cut the diesel car FRT, and increased the EV FRT.
I hope that Hong Kong politicians have more sense of responsibility, and are less in the pockets of the few very rich who really benefit from fossil fuel sales ...
This is what the Danish politicians did:
Selling a certain number of EVs per year in 2014 and 2015, the sales figures were increasing rapidly (with the introduction of the Model S especially).
Then they figured, ok, it's taking off now, so if we introduce a tax on it, we will get such an amount of tax revenue - amount of cars times the new tax. Despite warnings that people just might not want to buy as many EVs if they are heavily taxed, they put it into the budget as such.
Now, in the middle of 2016, they are like "Oh, what happened? People don't buy EVs any more, so we are not getting that revenue we thought". They are either very stupid and ignorant, or playing so on purpose.
Paid and sponsored by the Danish fossil fuel industry (possibly also some support from ICE car sales organisations?)
Selling a certain number of EVs per year in 2014 and 2015, the sales figures were increasing rapidly (with the introduction of the Model S especially).
Then they figured, ok, it's taking off now, so if we introduce a tax on it, we will get such an amount of tax revenue - amount of cars times the new tax. Despite warnings that people just might not want to buy as many EVs if they are heavily taxed, they put it into the budget as such.
Now, in the middle of 2016, they are like "Oh, what happened? People don't buy EVs any more, so we are not getting that revenue we thought". They are either very stupid and ignorant, or playing so on purpose.
Paid and sponsored by the Danish fossil fuel industry (possibly also some support from ICE car sales organisations?)
Just hope Autopilot 2.0 and P100 will be announced soon, so I can put my order in for delivery before 31.3.
Two points, firstly 2015 Tesla sales are inflated because Tesla/buyers in anticipation for the tax rate, bought a bunch of plates. So it will take time for 2016 to digest this, thus 2016 sales should be much lower. Secondly, tax might not be a complete lost, the person who didn't buy a Tesla might have bought another car (because he can no longer afford it), and paid tax on it.
Seems like the Danish has given up on being fossil free. In future, higher gas prices might push people back to EVs. The more EVs the better.
I think Autopilot 2.0 may require additional / enhanced hardware and sensors such as stereo cameras (which the current MX doesn't have yet). Full capabilities of these planned hardware may not be fully activated from day 1 of 2.0, but Elon has a stated goal of moving to level 3 (or 4?) autonomous driving within the next 2-3 years. Am keen to ensure my MX would have these hardware built-in when I take delivery. But this could be a challenging goal before 1/4/17...
Whether AutoPilot 2.0 is actually Level 3 Autonomous or just an improvement to the existing Level 2 system is an open question. However, the next generation of hardware for Tesla AutoPilot is coming sooner than many people thought.
Tesla Autopilot 2.0: next gen Autopilot powered by more radar, new triple camera, some equipment already in production
Anyone heard any updates on this? I know a couple of guys who may be interested to buy a Tesla but it may be risky if the delivery is post March 2017 and they have to pay much more than they expected based on some form of FRT being introduced for EVs.
As it is a budget policy, it is unlikely that the Government will announce before the budget speech. February 2017.
From my understanding, Tesla HK can 'guarantee' delivery before 31st March 2017 - check with them.
If the First Registration tax isn't extended, as seems likely, and then Tesla is forced to double its selling price, then the Guaranteed Resale Value will likely be irrelevant as used models would retain relatively more value.
Yes I always wondered if there would be a possbility that my delivered X would APPRECIATE in value on 1st April! But I think the Gov would be stupid to cancel the FRT waiver 100%. My guess is the FRT waiver would change from like 100% to something like 50% or 70%.
I wouldn't put a complete cancellation of the first registration tax incentive for EVs as 'likely'. It has been government policy for more than 20 years now. Would they just abandon that policy overnight? Surely doing so would declare it a failure.
Cancelling all EV tax incentive would pretty much kill demand for EVs in HK. Another way the HK Govt could go is to allow FRT waiver or incentive on an application basis, similar to the Environmentally Friendly Vehicles incentive.
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