As EVs are coming along faster in HK now, there will be more and more opposition to keep the FRT exemption as it is.
As suggested earlier, an abrupt change from 0% to 100% FRT overnight would totally kill further progress. On the other hand, full exemption cannot be expected to continue forever, despite the history of HK SAR incentives.
Hopefully, the Model X will hit Hong Kong before March 31, 2017. In March 2014, three years out seemed far into the future (see the beginning of this thread). With just over a year to go for the next possible extension, we should start lobbying for a solution that will be digestable to the LegCo majority. Now that we are getting the Formula E to Hong Kong this fall of 2016, cancelling the FRT exemption altogether would be quite embarrassing for Hong Kong.
One suggestion could be to introduce a gradual FRT, starting from April 1st, 2017:
1) The rest of 2017 should continue as FRT exempt
2) Starting January 1st, 2018, the FRT for any EV should be 1% off of what it would have been if not exempt. For every calendar month following, this percentage would increase by 1%
This would mean that by April 1st 2026, EVs would have to pay the same FRT as other cars.
By the time the Model III hits the market, FRT would be 10-20% of full FRT (depends on how the "Tesla Calendar" aligns with the Gregorian calendar!)
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The reason it is so important with a sliding phasing out is to avoid rushed transactions, followed by a total stall in the EV process. One percent per month is so gradual that it will be enough for people to act faster, yet not so punitive for those not making a specific deadline. The process of
changing ICEVs into EVs will be even further accelerated, in a sustainable way, while increasing revenue to HK SAR.
In fact, if the whole purpose of the FRT exemption is to get EVs here as fast as possible, a
gradual increase could prove even more effective than a constant total exemption, as it encourages people to switch over this month, rather than at a later stage.
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Eventually, a pollution tax could be added to the FRT of any car into Hong Kong. This would mean that even in 2026, there will be an advantage of choosing an EV over a fossil fuel car. The logic and fairness would be: You pollute, you pay.
Congestion issues is a separate matter, which is being dealt with by the HK SAR at this stage. No matter which vehicle, and how much or little it pollutes, it still takes up space when it's driving. GPS based road tax, with variable rates by location and time, could prove very efficient for Hong Kong. Also, more emphasis on electronic/internet processing of paperwork of all sorts, will reduce the need for people to actually drive somewhere.
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I think this was brought up before, just quoting it in to keep the text.
From
LCQ9: Exemption of payment of first registration tax for electric vehicles , see the bottom of this post.