Tax waivers for electric vehicles may be extended beyond a year, says Hong Kong financial chief

Paul Chan says concession for commercial vehicles will not necessarily be taken away after March 31 next year

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Tesla's updated Model S. Photo: Nora Tam

Published: 2:34pm, 24 Feb 2017Updated: 5:51pm, 24 Feb 2017

Hong Kong Financial Secretary Paul Chan Mo-po has indicated that waivers for first-time registration tax on electric commercial vehicles may be extended beyond a year.

Chan, who was speaking on an English radio phone-in programme on Friday morning, had announced in his maiden budget on Wednesday that waivers on first-time registration tax for electric commercial vehicles would be applied from April 1 to March 31 next year, but discounts given on the tax for electric private cars would be capped at HK$97,500, after considering the overall growth of the private car fleet.

“Although the extension is one year, it may be perceived as a short-term measure … at this stage, I would not say the extension of concession for commercial vehicles will necessarily be taken away one year later,” said Chan, responding to an audience member who questioned whether the latest measures were penalising the use of environmentally friendly vehicles.

The cap of HK$97,500 means a buyer of a Tesla Model S would end up paying about 80 per cent of the tax payable on the car.

But Chan said the incentives could still be strong for those who buy cars which cost below HK$400,000, adding that the main objective was still to reduce the number of cars on the road.

The opening of the new Tesla showroom in Wan Chai last June. Photo: Nora Tam