Commercial EV use needs boost after car owner tax break ends, green groups say

AdvertisementHong Kong budget 2026-27Hong KongTransportCommercial EV use needs boost after car owner tax break ends, green groups sayEnvironmentalists back move to end first registration tax concessions for private electric cars, say focus must pivot to businessesReading Time:3 minutesWhy you can trust SCMPLo Hoi-yingPublished: 12:00pm, 28 Feb 2026Hong Kong environmental groups have urged the government to focus on accelerating the commercial use of electric vehicles and enhancing green infrastructure, after scrapping a tax concession scheme for private cars that has cost HK$30 billion over the past decade.Green groups said on Friday that they supported the government’s decision to end the first registration tax (FRT) concessions for private electric cars, including the “One-for-One Replacement Scheme”. The move was announced by Financial Secretary Paul Chan Mo-po in his budget address on Wednesday.The scheme offers car owners a higher FRT concession of up to HK$172,500 (US$22,056) when they scrap and deregister an eligible older private car in exchange for a new electric vehicle (EV) purchase.AdvertisementChan said in his address that about 70 per cent of newly registered cars in Hong Kong were EVs and the need for the concession no longer existed.“From a modest variety of electric vehicles with higher prices to a larger variety of models with heightened comfort and better features, and a steady drop in prices, we believe electric cars have become competitive enough,” he said.AdvertisementIn response to queries from the South China Morning Post, the Transport Department revealed that more than 128,000 vehicles had received the tax incentives since 2018.AdvertisementSelect VoiceSelect Speed0.8x0.9x1.0x1.1x1.2x1.5x1.75x00:0000:001.00x