'Reduced tax allowance for EVs still substantial'
An automotive sector representative on Friday welcomed the extension of tax concessions for electric vehicles (EVs) for two years, adding that many buyers will still get a full rebate on the first registration tax even though the maximum allowance has been lowered by 40 percent. "It has a cap of HK$172,500 now, which is still substantial. It just means for EVs priced at HK$270,000 or below, you'll still be able to enjoy the full tax concession," said Peter Goh, the CEO of the Automobile Association. "So for the majority of EV buyers out there, I really do not see that the 40 percent reduction in tax concession to be an impediment at all." He said the policy, which has been around since 2018, is effective in encouraging motorists to switch to EVs. "It's been a catalyst for the significant growth of EV car sales in the past several years. In 2019, EV sales were a mere seven percent of the total car sales, and this ratio went up to 65 percent last year," he said. "That makes Hong Kong the second highest in terms of the EV to new car sales ratio. We're after Norway." The extended EV tax concessions are applicable until the end of March 2026.