Hong Kong Hybrid + Fuel Efficient FRT tax incentive to end!

[Lerxt]

Sorry that should be a ? I am aware of this but I have been told the transport department head has said it will end for EV's as well. Has anyone seen this in the local press?

Tax incentive for environment-friendly petrol private cars to be terminated on April 1 The tax incentive scheme for environment-friendly petrol private cars will be terminated on April 1, 2015. Once the incentive scheme is terminated, petrol private car models in compliance with the current qualifying standard will lose with immediate effect their eligibility for the first registration tax concession.

http://www.epd.gov.hk/epd/english/e...utions/environment_friendly_private_cars.html

 

[MikeC]

Looks like it's talking about high efficiency ICE vehicles, not EVs.

 

[Editot]

That was a surprise ...

found this: Tax incentive for environment-friendly petrol private cars to be terminated on April 1

"The Government remains committed to promoting wider use of electric vehicles, for which the FRT is waived till March 31, 2017."

 

[garethmchau]

Looks like it's talking about high efficiency ICE vehicles, not EVs.

Yes, see here:
Promotion of Electric Vehicles in Hong Kong | Environmental Protection Department

1. First Registration Tax for EVs is waived till end March 2017. Furthermore, enterprises which procure EVs are allowed 100% profits tax deduction for the capital expenditure on EVs in the first year of procurement.
   
   
   

 

[markwj]

The FRT exemption for pure EVs (no internal combustion engine (ICE) at all) was last renewed 2014, for 3 years until end of March 2017. Historically, it has been renewed for a couple of decades now. But, longer-term, many think the government will be pressurised to make it a sliding scale (with only the cheapest EVs achieving 100% exemption).

The news here is that there was a previous concession for high efficiency ICE vehicles. Not 100% exemption, but a discount off the full FRT. That is what has now been cancelled.

Bottom line: It affects Prius, not Tesla.

 

[markwj]

Moderator's Note: Changed title (was 'Hong Kong EV tax incentive to end!') to better reflect the situation.

Note that the EV FRT incentive will also 'end', but it has been 'ending' for 20 years now ;-)

 

[Dan_]

Sorry that should be a ? I am aware of this but I have been told the transport department head has said it will end for EV's as well. Has anyone seen this in the local press?



http://www.epd.gov.hk/epd/english/e...utions/environment_friendly_private_cars.html

"The tax incentive scheme for environment-friendly petrol private cars will be terminated on April 1, 2015. "

- It is only for PETROL private car, so pure EV not affected. i am more interested to know whether this ends the incentive for those plug-in hybrid (i8, panamera ehybrid, etc.). It may help with Telsa's sales figures as their price gap widen.

 

[DITB]

Before my Model S is even three years old, it might actually get a boost in its resale value: If the FRT is increased from 0% to some % for EVs, it should affect existing EVs in a positive way.

It will be quite interesting to see how the arrival of Tesla Model III in Hong Kong (RHD version) coincides with 1 April 2017. And how the FRT after that date will suit the expected price range of the Model III.

 

[Vmax]

I wouldn't bet on the increase of the resale value after FRT introduction.

 

[lx3h]

I wouldn't bet on the increase of the resale value after FRT introduction.

Agree, surely the agent will remain second-hand buyer this car was bought before FRT, so shouldn't pay extra to get it.

 

[duidui]

But it should cause the pre-FRT-increase EVs value to hold up better ...

 

[lx3h]

But it should cause the pre-FRT-increase EVs value to hold up better ...

Depends if your car has autopilot or not.