HK Budget – Tax Concessions for Green Vehicles

Hong Kong – The government will establish a HK$300 million fund to encourage the transport sector to introduce green and low-carbon vehicles, Financial Secretary John Tsang said.

It will provide a 36-month subsidy scheme for the replacement of Euro II diesel buses, extending a previous subsidy scheme to decrease the number of old diesel commercial vehicles, which expires next month.  The scheme will involve expenditure of about $540 million.

In a bid to encourage businesses to switch to electric, hybrid and other environmentally-friendly vehicles, Tsang said he would, “accelerate the tax deduction for capital expenditure on environmentally-friendly vehicles.  Enterprises can enjoy a 100 pct profits tax deduction in the first year…”