Environment minister Tse Chin-wan on Friday said the government expects to generate at least HK$1.6 billion in revenue from the designated garbage disposal bags under the impending pay-as-you-throw scheme.

But he also said that the administration will earmark a similar amount on promoting waste reduction and recycling.

From August 1, people will have to buy special bags for their rubbish in a bid to reduce the amount of waste going to landfills and encourage recycling.

In total, the government estimated the waste-charging scheme would bring nearly HK$1.8 billion in the coming fiscal year.

Tse said the actual amount generated would depend on various factors, including the extent of people's participation.

"The government has pledged before that the purpose of waste charging is not to generate revenue by itself. Therefore, we will spend roughly the same amount of money gathered to support waste reduction and also the recycling activities in Hong Kong," Tse said.

"In the year 2023/24, the government has been spending about HK$900 million in waste reduction and the promotion of recycling already."

Also announced in Wednesday's budget was the extension of tax concessions for electric vehicles for two years, but the amount will be cut by 40 percent.

Tse said he believed the lower tax break would not dampen the desire of motorists to purchase electric private cars (EPCs).

"There are more vehicle options available and prices have gone down. For those who've been using petrol vehicles, the amount they spend on fuel will be greatly reduced if they use EPCs. That is quite attractive," he said.

Tse added that many places around the world are also gradually reducing the amount of subsidies and concessions for purchasing electric vehicles, saying it was "not unique to Hong Kong".