Hong Kong accelerates electric car scheme after just 321 motorists trade in old vehicle for HK$250,000 tax break
- Rules on ownership period and age of car both softened after lukewarm response to programme last year
- Officials previously defended strict criteria as way to stop opportunistic buyers flipping cheap vehicles to enjoy the tax break
Securing a tax break by trading in a petrol car for an electric model just got easier after the Hong Kong government relaxed the eligibility criteria on Monday.
But lawmakers responded by calling on officials to take it a step further. Some wanted better tax breaks and suggested that all criteria be scrapped so anyone trading in a vehicle would qualify.
In February last year, the government introduced a programme for electric car buyers to enjoy a tax concession worth HK$250,000 (US$32,000) if they traded in a fossil fuel-powered car. But there were conditions: the applicant must have owned the vehicle for three consecutive years, and the car had to be at least six years old and licensed for 20 months.
The Transport Department on Monday said the ownership period had been cut to 18 months and the licensed period slashed to 10 months. The new conditions took effect immediately.
The government decided on the changes after studying public opinion, a department spokesman said.