You can install our site as a web app on your iOS device by utilizing the Add to Home Screen feature in Safari. Please see this thread for more details on this.
Note: This feature may not be available in some browsers.
The all-new Porsche Panamera S e-hybrid is emerging as the star in an already impressive line-up of the Panamera family.
The first plug-in hybrid car in Hong Kong is also the only Porsche model on the list of environmentally-friendly vehicles of the government's first registration tax incentive program.
Not that the tax concession of HK$75,000 will play a huge part in the decisions of the majority of buyers eyeing the Panamera S e-hybrid buyers, as the sports sedan listed at HK$1.86 million.
The revenue from motor vehicle first registration tax increased from $7.5 billion in 2012 to $9.6 billion last year.
Question:
To promote the use of electric vehicles (EVs) in order to improve roadside air quality, the Government has been exempting EVs from the payment of first registration tax (FRT) since 1994. Since the higher the retail price of a vehicle, the higher the amount of FRT is payable, it follows that the higher the retail price of an EV, the higher the amount of FRT is to be exempted. It has been reported that as luxury sports EVs have become very popular among the public in recent years, such tax concessions have resulted in a huge sum of tax revenue forgone for the Government. Some members of the public have queried that such tax concessions are in effect subsidising the well-off people to purchase luxury goods by public money, thus contravening the principle of fairness. In this connection, will the Government inform this Council:
(1) of the respective total numbers of newly-registered EVs being exempted from the payment of FRT in each of the past 10 financial years and set out a breakdown by the ranges of vehicle prices in the Annex I;
(2) of the respective total amounts of tax revenue forgone in each of the past 10 financial years due to exempting EVs from the payment of FRT; and
(3) whether it will consider amending the legislation to cease exempting certain types or models of EVs (such as high-priced sports EVs) from the payment of FRT or to grant such exemptions only for those EVs used for public transportation, so as to avoid subsidising the public to purchase luxury goods by public money; if it will, of the implementation timetable and details; if not, the reasons for that?
Reply:
President,
Electric vehicles (EVs) have no tailpipe emissions and are efficient in converting energy from the grid to power. Replacing conventional vehicles with EVs can help improve roadside air quality and reduce greenhouse gas emissions. The Government has been actively promoting the wider use of EVs. These efforts include, inter alia, various government departments taking the lead in using EVs, waiving FRT for EVs, working with the private sector to expand the EV charging network and encouraging vehicle suppliers to introduce suitable EV models into Hong Kong. As at the end of September 2015, 2 658 registered EVs are in use in Hong Kong. Comparing with only 74 in end of 2010, the increase is encouraging. Data also show that the types and models of EVs introduced into Hong Kong have also increased.
My specific responses are as follows:
(1) The respective total numbers of EVs exempted from the payment of FRT under the Motor Vehicles (First Registration Tax) Ordinance in each of the past 10 financial years are set out in the Annex II. These vehicles include private cars and commercial vehicles, excluding special purpose vehicles and government vehicles. As the vehicle types are different, there are also great differences in their prices.
(2) The respective annual amounts of FRT exempted under the Motor Vehicles (First Registration Tax) Ordinance in the past 10 financial years are set out in the Annex III.
(3) At present, the technology of EVs is still under development and some vehicle drivers have yet to establish their confidence in using EVs. Furthermore, the high research and development costs, and low production volume of EVs have resulted in their prices being higher than those of conventional vehicles. This situation is more acute in commercial vehicles. Currently, the net vehicle price of all electric buses and electric medium goods vehicles are over $1 million. The waiver of FRT for EVs is an important strategy in promoting the use of EVs. Based on these considerations, we are of the view that a cap on the tax waived in respect of the FRT of EVs should not be set at this stage so as not to hinder the promotion of the use of EVs. Since the waiver of FRT for EVs is time-limited, the Government will carefully examine relevant factors such as technological development of EVs, the latest EV market situation and the drivers' attitude towards EVs when considering whether the waiver arrangement should be continued with a view to ensuring that public money is well spent.
Ends/Wednesday, November 4, 2015
Issued at HKT 12:47
Too bad, I was hoping they would get some tax from i8 owners and subsidize the build out of some more medium chargers.
In general though I think FRT rate should always be calculated based on emissions (combination of CO2 & NOX) and not the price of the car only.
In general, I agree, but how to measure emissions for non-pure-EV? The VW scandal (which really shouldn't come as too much of a surprise as it has been pretty clear for years that the automotive manufacturers have been cheating on emissions tests for decades) highlights this.
For example: 269 VW "Caddy" diesel vehicles in Hong Kong got classified as 'green' and got a resulting FRT tax concession.
news.gov.hk - Environment - VW Caddy model banned
Normally, road tax would be the way to handle this (rather than first registration). The first registration concession is to offset the higher cost of the vehicles.
But problematic is if a scale was used 0 emissions = $0, N emissions = $N, then buses and trucks would be paying HK$100,000+ a year in road tax.
I think i8 is not tax free, their prices are over 2 million.Too bad, I was hoping they would get some tax from i8 owners and subsidize the build out of some more medium chargers.
Because i8 is a hybrid and not a true electric.I think i8 is not tax free, their prices are over 2 million.
FRT is not an environmental tax, it is a tax that is meant to deter drivers. FRT exemption is an incentive for EV cars. This means EV should be taxed even though EVs don't have tail pipe emission, because EVs still use the HK roads and congests streets. To have a higher acceptance of EVs, we can instead choose to INCREASE FRT for all cars and DETER ICE cars rather than incentivitize vehicle ownership. In a way, isn't this what China is doing? IMHO EVs should not be tax free (in the future).
Perhaps what you are proposing should be an EXTRA emissions tax for ICE on top of FRT. Which I fully support. Once again, if we are true tree huggers we should be promoting public transit. ie. tax cars and use the revenue to build out more MTR.
The revenue neutral approach might be the key.
What if FRT went UP for non-qualifying and DOWN for qualifying vehicles? Adjust it every year, or so, to make it revenue neutral.
The idea is that polluting vehicles get more expensive the more non-polluting vehicles are on the road.
Of course, at some point the whole thing collapses, where everyone is buying non-polluting vehicles and the tax on polluting vehicles is HK$100million/vehicle.
I think i8 is not tax free, their prices are over 2 million.