It's now cheaper to switch to an e-car in Hong Kong

Car owners can choose to switch to an e-vehicle to enjoy $250,000 tax concession.

In a bid to curb the city’s worsening air pollution, Finance Secretary announced in his 2018 budget address a one-for-one replacement scheme that will allow eligible private car owners to scrap their cars and buy an electric vehicle and enjoy up to $250,000 first registration tax concession.

The concessions will remain in force until March 31, 2021 and will take effect amidst the current FRT concession of up to $97,500.

To avail of the benefit, car owners need to arrange to scrap and deregister their old vehicle for concessions that will remain in place until March 31, 2021. 

The move is poised to boost demand for Teslas and other environmental-friendly vehicles in the city.

Moreover, the government is earmarking another $800m following last year’s $200m allocation to promote the installation of renewable energy facilities at government buildings, venues and community facilities. 

“The Government will also enhance tax concessions for capital expenditure incurred by enterprises in procuring eligible energy efficient building installations and renewable energy devices by allowing tax deduction to be claimed in full in one year instead of the current time frame of five years,” he added. 

Photo from https://www.gettyimages.com/event/electric-vehicle-charging-stations-in-hong-kong-124149343