Electric car industry ‘demoralised’ by Hong Kong government policy after tax waiver capped, legislator says
Environmental affairs panel members ask why officials are prioritising commercial vehicles over private ones
Hong Kong lawmakers on Monday expressed doubts about the city’s policy on electric cars, including its prioritisation of commercial over private vehicles and limited tax incentives for buyers.
At a meeting of an environmental affairs panel at the city’s legislature, members gave government officials one last grilling before the city’s 2018-19 budget is unveiled on Wednesday. Hong Kong’s finance minister is expected to include in his speech the results of a review last year of a controversial cap on electric vehicle tax waivers.
The Post reported last week that the government was expected to lower the first registration tax for private electric vehicles.
“Since the cap, private electric vehicle sales have dropped sharply. The government has demoralised the whole industry,” panel member Lo Wai-kwok said.
The tax waivers were instrumental in helping boost the city’s private electric car fleet from just 69 in April 2011 to 10,588 by April last year. But the move by the government to cap the tax break at HK$97,500 last year has slowed this growth.
