Tax incentives for environmentally-friendly private cars. Hong Kong. PR China

By News Editor / Updated: 29 Aug 2014

In an attempt to reduce roadside vehicle emissions and improve air quality for residents, drivers who purchase environmentally- friendly private cars are entitled to a 30% reduction in vehicle tax.

Background & Objectives

Vehicle emissions are the major source of roadside air pollution in Hong Kong and continually growing car ownership places increasing pressure for the Territory Government to improve conditions. To encourage the use of eco-friendly petrol private cars, from the 1st April, 2007, a 30% reduction in the First Registration Tax is offered to buyers of newly registered environment- friendly petrol private cars.

Implementation

Qualifying standardsIn order to qualify for the tax incentive, environmentally-friendly cars are classified as those;
  • Emitting hydrocarbons and nitrogen oxide emissions not exceeding 50% of the limits in the Euro VI emissions standards or the Japan emission standards; AND
  • >
    • Fuel efficiency (measured by mileage travelled per litre of fuel) being at least 40% better than the average fuel efficiency in the corresponding car class according to vehicle weight

    Conclusions

    Hong Kong’s Environmental Department is to review the qualifying standards annually in order to monitor any technical advancements in standards to ensure the tax incentive for vehicles complies with the latest emission and fuel efficiency criterion. The new tax incentive scheme (and other incentives/interventions) are expected to significantly improve the air quality both locally and throughout the Hong Kong territories.Further details of the scheme is available athttp://www.td.gov.hk/public_services/licences_and_permits/vehicle_first_registration/index.htm
Topic: 
Clean and energy-efficient vehicles
Archive
Country: 
China
City: 
Hong Kong
Contact: 
Michael Carreno
Keywords: 
28 Aug 2007
29 Aug 2014