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Hong Kong First Registration Tax

Discussion in 'Hong Kong' started by markwj, Feb 20, 2014.

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What do you think will happen to the Hong Kong EV 0% FRT Tax Break?

Poll closed Feb 25, 2014.
  1. It won't get renewed and EV incentives will be dropped.

    0 vote(s)
    0.0%
  2. It won't get renewed, but EVs given a FRT break somewhere between 0% and the hybrid discounts.

    0 vote(s)
    0.0%
  3. It won't get renewed, but EVs given the same FRT break as hybrids.

    0 vote(s)
    0.0%
  4. It will get renewed for a short time (1 or 2 years).

    54.5%
  5. It will get renewed for another 5 years.

    45.5%
  1. markwj

    markwj Moderator, Asia Pacific

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    The FRT decision is coming, and hopefully next week's budget will announce its renewal (or not).

    Anyone want to predict what will happen?

    - - - Updated - - -

    My own vote is for another 5 years. I don't think the government can back away from this now. Politically, or otherwise.
     
  2. jkliu47

    jkliu47 Member

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    I was in HK visiting relatives - put in a call to Tesla HK with a question about China's tax PV tax incentives (none for Tesla since its not a domestic manufacture). Since the HK prices were just announced that day, I also asked about the FRT and whether it will be renewed. Although there was no official statement, it was clear from our conversation that Tesla's understanding is that the FRT will be renewed and ongoing.

    So I am voting 'renewed for a short time' - (just to be conservative).
     
  3. DITB

    DITB Charged.hk co-founder

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    If it was my decision, I would make something like this:

    0% until 31-3-2015.

    From 2016 and onwards, step increments to normalise, possibly

    10% until 31-3-2016, 20% until 31-3-2017 and so on, until it will be full FRT by 2025.

    Since the budget doesn't run that far, I don't know whether or not it is possible.

    This would work the way that whatever EV is imported, full FRT is calculated as pr current regulations, then the percentage is applied. If the FRT calculates to 130,000, that would mean for an EV, the FRT would be 13,000 (in that budget period where EV FRT is 10%), and so on. In other words, the FRT % is applied after​ the normal FRT is calculated.

    Eventually, most cars will be electric, it's just a question of change of infrastructure, mindset, mass production advantage, battery technology and so on. It's here, and it's improving, and slowly, ICE cars will fade away as most carmakers will join the EV ride. Why? Because people will demand it.

    It's all pointing in that direction - we are early movers, it is no longer "if" but "when".

    A gradual increase will be fair for all, and give people time to buy the car they want. It will also speed up the process to implement it, as people will know "if we wait, the price will go up, let's do it NOW".

    Hopefully, falling EV prices will match the gradual increase, so a 2025 Tesla Model S (or equivalent) will still cost the same as today, corrected for inflation.

    Finally - had it been practically possible, I would even vote for a monthly increase, say

    "0% FRT until 31-3-2015, after that, 1% increase each month until it reaches 100%"

    It's not beneficial for anyone with larger steps, a gradual change is much better.
     
  4. CCT

    CCT Member

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    I sort of agree with DITB on that eventually the government should gradually increase EV FRT as more EVs are getting on the road. This process shall be determined by the mix of clean energy cars and gas cars on the road and the infrastructure to support clean energy cars such as charging stations for EVs. For 2012-2013, revenue from Motor Vehicle Taxes was HK$7,466M, representing 1.69% of the HK$442,150M Total Government Revenue.
     
  5. markwj

    markwj Moderator, Asia Pacific

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    I guess a gradual increase makes sense, and is less of a problem than the current situation of not knowing if it will go from 0% to 100% in one day.

    This will be a law, normally submitted with the budget, so not an issue to lay it out with 5 or 10 years. The last time was for 5 years.
     
  6. markwj

    markwj Moderator, Asia Pacific

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    Wow. Only 8 respondents so far but 100% think it will get renewed.
     
  7. lx3h

    lx3h Charged.hk TSLA Grp Rep

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    I hope it will be renewed but I'm sort of a pessimist when it comes to government policies.
     
  8. DITB

    DITB Charged.hk co-founder

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    The suspense is killing me! At least, financing is secured, so the last thing holding me back from confirming is this FRT.

    Help calm me down, does someone know WHEN the release is likely, and WHERE it will be announced first?

    A HK SAR official website, or leading newspapers or ... here maybe?
     
  9. markwj

    markwj Moderator, Asia Pacific

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    www.budget.gov.hk - The 2014-15 Budget

    11am on 26th. Live and webcast. Text normally goes up very quickly afterwards.

    - - - Updated - - -

    P.S. This is what was written five years ago:

    http://www.budget.gov.hk/2009/eng/budget32.html

     
  10. DITB

    DITB Charged.hk co-founder

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    Just as I found this page

    汽車首次登記稅系統

    and read the first few words, the phone rang. It was Stone from Tesla (calling from the US, helping to roll out Tesla model S in HK). Had a 37 minute long chat with him, and managed to get the price down to 713K HKD in the process (not getting fog lights, nor trunk cover now).

    Wing Hang Bank financing at 80% only "because it's a new car in Hong Kong" or something. OK. 2%, maximum 48 months (which, is really 43 months, as they want the first 5 months up front)

     
  11. lx3h

    lx3h Charged.hk TSLA Grp Rep

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    DITB , great info on financing. I'm gonna need that. Not 80% though. Probably 40%. If still at 2% by the time I get my car, either over a 4 year period or 43 months will be great. What I'm interested to know is whether more banks will be offering financing after the first badge of Model S arrives.

    Please continue with the excellent research of yours
     
  12. Lerxt

    Lerxt Member

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    I've been offer a 1.88% tax loan that will cover it for me, from Standard Chartered Bank. I will take it now and invest the money for 6 months or so...

    How do I get onto that Stone guy to get a discount!?
     
  13. lx3h

    lx3h Charged.hk TSLA Grp Rep

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  14. DITB

    DITB Charged.hk co-founder

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    Sorry this could be misunderstood. I didn't get a discount, but Stone Strickland helped me avoid ordering fog lights and the trunk cover. I am now at 713K in my config, waiting for the 11am 26/2 speech regarding future FRT exemption!

    Fog lights: I wanted them to get better light available, as it is rarely foggy in HK (fog means vis less than 1000m, NOT to confuse with hazy - no fog lights needed then). Stone says the normal lights are quite good as they are.

    Trunk cover: It is NOT a roll-up thing, but a flat plate. In fact, it carries a load, if needed, but I am not going to have things placed there: If you brake hard or hit something, it will hit your head from the back, possibly. Also, it's just a plate, and you can order it later.

    I am not getting dual chargers - not sure if I am burning a bridge there? 40 vs 80 amps, but it won't affect supercharging so ... when will you ever need 80 amps? Either you supercharge to fill up quickly, or you charger at 40 amps or less.
     
  15. waidy

    waidy Member

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    Re Trunk cover: I have trunk cover but found you don't really need it. The dark tinting really cut down at least 70% visibility from looking into your trunk. In additions, the window where you look into the trunk (after all doors are closed) is small. Therefore I agree it is not necessary. It is not a roll-up thing but it works perfect and allow you to move it out and put it in easily. Some people take it out when they haul big items such as twin beds, solar panels, etc.

    Re dual charger: Dual charger is only useful if you charge your MS via HPWC or 80Amp EVSE. It is unlikely that EVSEs in Hong Kong public charging facilities equip 80Amp EVSEs. Supercharging is DC and it does not deploy twin charger. Therefore, I agree with DITB.
     
  16. markwj

    markwj Moderator, Asia Pacific

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    "B" minus 90 minutes, and exit polls are at 100% for a renewal of at least 1 year.

    Whatever happens, in a few hours we should know what will happen to the future of EV adoption in Hong Kong.

    Anyone hitting 'confirm' now, to lock in the order in the hope that will lock in the incentive?
     
  17. Lerxt

    Lerxt Member

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    Given the reports of the appalling smog in Beijing this week they would be foolish to not renew it for 5 years. However....

    Tesla HK told me yesterday that they had been told they see no reason why it should not be renewed.
     
  18. 772

    772 Member

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    Are you saying that a decision on the FRT waiver will be coming in ~1 hour? If so, I hope they will do the right thing and extend it...
     
  19. DITB

    DITB Charged.hk co-founder

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    772, just under an hour now. You should be able to watch it live here:

    The 2014-15 Budget - Budget Speech

     
  20. lx3h

    lx3h Charged.hk TSLA Grp Rep

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    I hit that confirm long ago by accident, though I got a second life to wait till 27th.
     

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