Hong Kong’s decision to end tax breaks for private electric cars has sparked a rush to the showrooms, with some residents even selling their eligibility for the incentive scheme.
A car dealer told the South China Morning Post on Thursday that sales had surged seventeen times, adding that one customer broke into tears just after midnight, fearing he had missed the registration deadline.
“Last night there were many people … there was a queue at one point,” said Eric Wong Ngai-lik, chairman of Richburg Corporation, the Hong Kong dealer for electric vehicle (EV) brands MG and GAC Aion.
“One customer arrived at our showroom after midnight and became very emotional, thinking he was no longer eligible. But the issue was resolved after we explained he would still qualify as long as he bought an in-stock vehicle before March 31.”
Financial Secretary Paul Chan Mo-po announced in his budget address on Wednesday that from April 1, the government will scrap first registration tax (FRT) concessions for private electric cars, including the “One-for-One Replacement Scheme” scheme.
The one-for-one 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 car purchase.
