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Tax Incentives for Environment-friendly Petrol Private Cars
Background
Qualifying Standards for Environment-friendly Petrol Private Cars
Environment-friendly Petrol Private Cars
- Car models imported by authorized vehicle dealers and type approved by EPD
- Cars imported by parallel importers or individuals
Validity of "Environment-friendly Private Car Certificate"
How to apply for first registration tax concession for Environment-friendly Petrol Private Cars?
Enquiry
Environment-friendly Petrol Private Car Leaflet
Environment-friendly Petrol Private Car Poster
Tax Incentives Scheme for Environment-friendly Petrol Private Cars
Vehicular emissions are the major source of roadside air pollution in Hong Kong. Reducing emissions from vehicles can improve our roadside air quality. To encourage the use of environment-friendly petrol private cars with low emissions and high fuel efficiency, starting from 1 April 2007, a 30% reduction in the First Registration Tax (FRT) will be offered to buyers of newly registered environment-friendly petrol private cars, subject to a cap of HK$50,000 per car.
Environment-friendly petrol private cars emit about 50% less hydrocarbons (HCs) and nitrogen oxides (NOx) and consume about 40% less fuel than conventional petrol Euro IV private cars. Owing to their higher fuel efficiency, they also emit about 40% less carbon dioxide (CO2), a key greenhouse gas contributing to global warming. Promoting the use of environment-friendly petrol private cars can bring substantial environmental benefits.
Qualifying standards for Environment-friendly Petrol Private Cars
The qualifying standards for environment-friendly petrol private cars are set out below -
- hydrocarbons (HCs) and nitrogen oxides (NOx) emissions not exceeding 50% of the limits in the Euro IV emission standards or the Japan 2005 emission standards; AND
- fuel efficiency (measured by the mileage traveled with a litre of fuel) being at least 40% better than the average fuel efficiency in the corresponding private car class according to vehicle weight.
Emission Requirements:
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Complying standards
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50% of Emission Limits
(g/km)
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Hydrocarbons
(HC)
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Nitrogen oxides (NOx)
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Euro IV emission standards
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0.05
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0.04
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Japan 2005 emission standards
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0.025
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0.025
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Fuel Efficiency Requirements:
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Vehicle Weight
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Fuel Efficiency Limits (Lower limit in km/L)
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Under Japanese Test Cycle
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Under Euro
Test Cycle
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less than 703 kg
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26.1
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26.7
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703 kg or more, but less than 828 kg
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23.2
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23.7
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828 kg or more, but less than 1,016 kg
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22.1
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22.6
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1,016 kg or more, but less than 1,266 kg
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19.7
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19.3
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1,266 kg or more, but less than 1,516 kg
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16.0
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15.4
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1,516 kg or more, but less than 1,766 kg
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12.9
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13.1
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1,766 kg or more, but less than 2,016 kg
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11.0
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11.2
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2,016 kg or more, but less than 2,266 kg
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9.6
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9.8
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2,266 kg or more
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7.9
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8.2
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The Environmental Protection Department (EPD) will review the qualifying standards annually in the light of technological advancement to restrict the tax incentive to vehicles of truly outstanding emission and fuel efficiency performance. The new qualifying standards in the above table are to be effective on 1 April 2008 and petrol private cars meeting only the previous standards will not be eligible for the FRT reduction.
Environment-friendly Petrol Private Cars
Environment-friendly petrol private cars are imported either by dealers authorized by car manufacturers (i.e. authorized car dealers), parallel importers or individuals. Details are as below:
(a) Environment-friendly petrol private cars imported by authorized car dealers and type-approved by EPD
Car manufacturers have provided sufficient information to prove to the satisfaction of EPD the compliance of these vehicle models with the environment-friendly petrol private car qualifying standards. As a result, EPD has issued to each of the car models an "Environment-friendly Private Car Certificate" such that cars of the same model imported by the relevant car manufacturer via his authorized car dealer are also environment-friendly petrol private cars (i.e. type-approved to be compliant with the environment-friendly petrol private car qualifying standards).
Below is a list of environment-friendly petrol private car models meeting the new qualifying standards effective on 1 April 2008 that have been type-approved by EPD. The list will be updated when new environment-friendly petrol private cars have been type-approved by EPD.
Table 1: Environment-friendly petrol private car models that have been type-approved by EPD
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Brand/ Make
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Car Model
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Binz
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E350 Facelift Binz XL VIS-A-VIS
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Honda
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Step WGN (2.0)
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Lexus
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LS 600hL
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Lexus
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RX 400h
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Mazda
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Mazda 8 5DR Wagon 2.3G
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Mazda
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Mazda 8 5DR Wagon 2.3J
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Mini
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Mini Cooper Manual
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Nissan
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Serena 2.0L MPV LUX
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Nissan
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Serena 2.0L MPV STD
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Nissan
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Serena 2.0L MPV (LCV)
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Subaru
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R2 R FF i-CVT
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Subaru
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R1 R FWD i-CVT |
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Toyota
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Prius
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Toyota
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Noah
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Volkswagen AG
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Phaeton 3.2L V6
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Remark: With effect from 16 April 2008, an environment-friendly petrol private car model Mazda 8 5DR Wagon 2.3 is removed from the list at the request of the authorized dealer because the 2007 year model Mazda 8 5DR Wagon 2.3 is no longer available on the Hong Kong market.
(b) Environment-friendly Petrol Private Cars imported by parallel importers or individuals
Cars manufactured for different places may be designed to meet different emission standards and have different options for purchase which can affect their emission and fuel efficiency performance. Every car imported by either a parallel importer or an individual will have to provide evidence to prove to the satisfaction of EPD that the cars can comply with the environment-friendly petrol private car qualifying standards. Since these cars are imported on an individual basis, EPD will issue an "Environment-friendly Private Car Certificate" to each of them.
Unless a car imported by a parallel importer or an individual has a valid "Environment-friendly Private Car Certificate" issued by EPD, it will not be eligible for the FRT reduction. A car buyer in consideration of buying such a car should ask for the valid "Environment-friendly Private Car Certificate" issued by EPD for the car. The Certificate will bear details of the car including engine number, chassis identification number and vehicle model and the validity period of the certificate.
Below are cars that are imported on an individual basis and have been tested to be in compliance with the environment-friendly petrol private car qualifying standards effective on 1 April 2008.
Table 2: Environment-friendly petrol private cars that have been imported by parallel importers or individuals
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Brand/ Make
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Model
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Honda
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Civic Hybrid
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Toyota
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Alphard Hybrid
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Toyota
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Estima Hybrid
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Consumers are advised to take note of the fact that the private car models in Table 2 above have not been type-approved by EPD, irrespective of whether they are imported by authorized dealers, other parallel importers or individuals. Consumers should not assume that all vehicles of the same models will comply with the environment friendly petrol private car qualifying standards. It is the responsibility of a prospective buyer to verify and ensure that the vendor has obtained a valid "Environment-friendly Private Car Certificate" issued by EPD for the specific car in question.
Validity of "Environment-friendly Private Car Certificate"
Since EPD will review the environment-friendly petrol private car qualifying standards annually for tightening them in the light of technological advancement, "Environment-friendly Private Car Certificate" has a validity period. If expired and the cars concerned cannot comply with the new qualifying standards at the time, they will lose their eligibility for the FRT concession. Thus, vehicle owners or car vendors should submit the first registration application to Transport Department during the validity period of the relevant "Environment-friendly Private Car Certificate" to benefit from the FRT concession.
How to apply for first registration tax concession for Environment-friendly private cars?
With effect from 1 April 2007, a vehicle owner applies with the Transport Department (TD) for first registration of his private car which is compliant with the qualifying standards for environment-friendly petrol private cars and have the "Environment-friendly Private Car Certificate" will have the FRT reduced by 30%, subject to a cap of HK$50,000 per car.
Note: In addition to the above procedures, vehicle dealers or owners shall also complete all the established procedures for vehicle first registration and produce necessary documents to the departments concerned.
Enquiry
For enquiries about the environment-friendly petrol private car models and the tax concession, please contact the following departments:
EPD (for enquires about the environment-friendly petrol private car models and details of the scheme)
Tel: 2594 6392
Fax: 2824 9361
Address: Room 4518, 45/F, Revenue Tower, Wanchai, Hong Kong Environmental Protection Department Mobile Source Control Group.
TD (for enquiries about the FRT reduction)
Tel: 2804 2600
Address: Hong Kong Licensing Office, Transport Department, 3/F, United Centre, 95 Queensway, Hong Kong.
Webpage: http://www.td.gov.hk/home/index.htm
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