Better Way For HK Govt to do FRT

[gubes]

There is a lot of controversy over the decision the government made on FRT on Electric Vehicles - they clawed this back on the argument on congestion.

But I actually think the government should put new vehicles into different bands based on emmissions.

The current FRT system works like this:

First 150,000 taxed at 40%;
Next 150,000 taxed at 75%;
Next 200,000 taxed at 100%;
Amount after 500,000 taxed at 115%.

EVs get a 97,500 tax exemption.

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My proposal would be to put vehicles into 4 bands. Band 1 would be vehicles with ZERO emissions, Band 2 would be vehicles that have combined cycle CO2 emmissions below 100g/km. Band 3 is 100-200g and Band 4 above 200g. Of course, I think the band classification should INCLUDE NOx as that is far more harmful.

Something like this:

FRT Tax Rates

Band 1 Band 2 Band 3 Band 4



First 150,000 15% 30% 50% 65%

Next 150,000 25% 50% 90% 120%

Next 200,000 35% 70% 120% 150%

Amount over 500,000 45% 85% 140% 175%

The basic idea is to make it broadly revenue neutral but encourage customers and car companies to purchase and sell low emission vehicles.

Now on CONGESTION.......

I would make it mandatory for every private car owner to own a E-TAG (such as Autotoll). Then at various times of day in congested areas, you can enforce a congestion charge - in order to discourage people from using private cars in congested areas. That is a far more effective way to deal with congestion!

They do something similar in London but the mistake they made there was that they focused on CO2 instead of NOx which encouraged wide spread adoption of Diesel.

Anyway, interested in your thoughts.

 

[Captain_Kong]

Tesla to cut back presence in Hong Kong if Musk’s “beacon city” fails to adopt new EV incentives , says report
Tesla to cut back presence in Hong Kong if Musk's "beacon city" fails to adopt new EV incentives , says report

 

[gubes]

Tesla to cut back presence in Hong Kong if Musk’s “beacon city” fails to adopt new EV incentives , says report
Tesla to cut back presence in Hong Kong if Musk's "beacon city" fails to adopt new EV incentives , says report

That's what happens when you go from selling several thousand vehicles a year to less than 100.

 

[ediot]

your idea is sound - what public policy needs in order to push buyers towards EV is the tax parity between EV and ICE. the bullshit about road congestion is easily mitigated by raising FRT for ALL new cars, whilst maintaining the tax parity. say for a $800k EV, you pay $100k tax for a total of $900k. for a $800k ICE, you pay $350k tax for a total of $1.15mil. More road congestion? up the tax amount by another 100k for BOTH EV and ICE. as long as there is adequate parity between the two, buyers will more seriously consider making an EV work with their daily lives.

the main hurdle i can see, however, is the cronyism and gov officials bowing to the incumbent big autos.

personally, to make more sense, the gov can easily just do FRT for ALL cars according to final car price tag (i.e. charge the same amount of tax for both EV and ICE), then implement a much needed, more relevant and accurate Carbon Tax, which depends on CO2 and/or NOx emission. this way, EVs are exempt for this tax, whilst hybrids can benefit and for those who can't/wont make an EV integrate with their current life, there's still strong incentive to pick a low emission ICE

just a few more cents into the abyss

 

[Lerxt]

The whole thing smacks of corruption. Plain and simple. Not surprised with a non representative government.