Mark,
Do you have any understanding of the FRT Provisional Tax Valuation? I checked Customs Department site you got the quote from and it seems that for importers/dealers there is a way to apply before Feb 21 and receive FRT's Provisional Tax Valuation based on original tax before new budget. I assume that would be 0% for EVs. I wonder if we confirm/pay for a car now even if delivery is in April, whether we can lock into old (well, hopefully new as well) FRT waiver (or does Tesla need to have actual physical cars landed in HK first).
I suspect Tesla would have to check if that is possible.
My concern is that there are two separate things here:
1] The FRT
2] The FRT waiver.
On a HK$579,000 car, the FRT is currently HK$463,350.
Say dealer (Tesla) locks it in at that rate, and Feb 26th the government raises it to across the board 10%. Because it is locked in, we can pay the old rate at HK$463,350 (rather than the new one HK$509,685).
Transport Department - Guidelines for Importation and Registration of Pure Electric Vehicle (PEV) and Plug-in Hybrid Electric Vehicle (PHEV)
According to the Motor Vehicles (First Registration Tax) Ordinance (Cap. 330), first registration tax shall not be payable in respect of any motor vehicle which is propelled solely by electric power and does not emit any exhaust gas (i.e. PEVs). This provision shall expire on 31 March 2014 or such later date as the Legislative Council may by resolution determine.
So, up until 31st March 2014 we get to waive the first registration tax of HK$463,350 (or HK$509,685).
Checking the actual law:
Cap 330 s 5 Tax not payable in respect of certain motor vehicles (MOTOR VEHICLES (FIRST REGISTRATION TAX) ORDINANCE)
It is written as a clause:
(3) Tax shall not be payable in respect of any motor vehicle which is propelled solely by electric power and does not emit any exhaust gas. (Added 35 of 1994 s. 2)
(4) Subsection (3) and this subsection shall expire at midnight on 31 March 1997 or such later date* as the Legislative Council may by resolution determine. (Added 35 of 1994 s. 2)
Note:
* Expiry date: 31 March 2014 (see L.N. 237 of 1997; L.N. 70 of 2000 and 27 of 2000 s. 3; L.N. 77 of 2003; L.N. 53 of 2006; L.N. 50 of 2009).
So, the clause expires at 31st March 2014.
I suspect that you could lock-in the current rate of FRT by obtaining a Provisional Tax Valuation, but if you tried to register a car after 31st March 2014 you wouldn't be able to claim the waiver.
Now, if you could get a Provisional Tax Valuation saying HK$0 due, that would be a different story.
FRT is actually paid at the time of registration, and the car must be physically in Hong Kong at that time.
All that said, I'm not a lawyer
Regards, Mark.
P.S. FRT waiver for EVs was first introduced in 1994 (for 3 years until 1997), and has been renewed since (last time to expire 31st March 2014). So, it has been in place for 10 years now. It would be kind of abrupt for the government to cancel it (let it expire) just as EVs are starting to take off.
