Financial Secretary Paul Chan announced on Wednesday the government would not extend the concession arrangement for electric private cars after it expires at the end of March.

Introduced in 2018, the "One-for-One Replacement" Scheme aims to encourage the adoption of electric vehicles.

Under the scheme, owners can scrap an older private car and receive higher first registration tax (FRT) concessions when replacing it with a new electric car.

The current concession cap is HK$172,500.

Only electric private cars with a pre-tax value of HK$500,000 or less are eligible for the concession.

"Given the maturity of technology, ample supply, more choices of vehicle models and reduced prices, the current FRT concession arrangement for electric private cars will not be extended beyond its expiry at the end of March this year," Chan said.

Chan said the Environment and Ecology Bureau would announce the details in due course.

However, the first registration tax for electric commercial vehicles, electric motorcycles and electric motor tricycles would continue to be waived in full until the end of March 2028.

The number of electric vehicles has grown rapidly in Hong Kong, quadrupling over four years to exceed 140,000.

The government estimates that by 2030, the number of electric private cars in Hong Kong will surpass 290,000, potentially approaching 500,000 by 2035.

According to a government roadmap, the target is to cease the new registration of fuel-propelled private cars, including hybrid vehicles, by 2035 at the latest.

This is intended to help achieve zero vehicular emissions and support Hong Kong's goal of becoming carbon neutral by 2050.


Edited by Tony Sabine