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Tax Incentives for Environment-friendly Petrol Private Cars

Tax incentives for environment-friendly petrol private cars terminated on 1 April 2015 

Background

Profits Tax Deduction for Capital Expenditure on Environment-friendly Vehicles

Enquiry

 

Tax Incentives Scheme for Environment-friendly Petrol Private Cars (terminated on April 1)

To encourage the use of environment-friendly petrol private cars with low emissions and high fuel efficiency, reduction in the First Registration Tax (FRT) was offered to buyers of newly registered environment-friendly petrol private cars from 1 April 2007 to 31 March 2015.  The concession in FRT was 30% with a cap of HK$50,000 when the scheme was launched in April 2007. In June 2011, the concession in FRT and cap were raised to 45% and HK$75,000 respectively.

It has been a standing arrangement of the Environmental Protection Department (EPD) to conduct an annual review of the scheme, with the outcome being implemented in the following April. The reviews have principally considered technological advancements and the prevailing statutory emission standards with a view to restricting the tax incentive to vehicles with outstanding emission performance and fuel efficiency.

The latest review in 2014 considered that as the emission control technology of petrol private cars has advanced to such a mature stage that further emission reduction is limited and decided to terminate the scheme on 1 April 2015.
 

Press Release on 24 February 2015


 Profits Tax Deduction for Capital Expenditure on Environment-friendly Vehicles

Starting from 18 June 2010, businesses which have purchased eligible environment-friendly vehicles may deduct the capital expenditure incurred under profits tax.

Profits Tax Deduction for Capital Expenditure on Environment-friendly Vehicles

 

Enquiry

For enquiries about past environment-friendly petrol private car models and the tax concession, please contact the following departments:

EPD (for enquires about past environment-friendly petrol private car models)

Tel: 2594 6392
Fax: 2824 9361
Address: Revenue Tower, Wanchai, Hong Kong, Environmental Protection Department Mobile Source Group.

Inland Revenue Department (for enquires about the profit tax deduction for capital expenditure on environment-friendly vehicles)

Tel: 187 8088
Address: Revenue Tower, Wanchai, Hong Kong.

Webpage: http://www.ird.gov.hk/eng/faq/efv.htm

 

 

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User review date: 
Monday, 14 April, 2014