Proposed increase in Electric Vehicle licence cost in Hong Kong may escalate by a whopping 536% as per government's plan.
The Hong Kong government has been actively promoting electric vehicles (EVs) through various incentives, including reduced or waived first registration tax and lower licence fees compared to conventional fuel vehicles. However, specific projections or announced changes to these fees over the next five years have not been publicly disclosed.
In a bid to raise more revenue, the Hong Kong government has initiated a series of measures, which include increasing tolls at two tunnels and doubling metered parking fees. The spokesperson for the government has stated that these changes are part of their efforts to address the deficits the government has recorded for the past three financial years.
Regarding EVs, the government has announced that the EV license fees will be raised annually over the next five years, with the first phase starting from November 1, 2023. However, the exact increase in EV license fees over this period has not been specified.
The average cost of an EV license in Hong Kong could potentially increase by more than 500% over the next five years, but the exact figures are yet to be revealed. It is worth noting that EV license fees currently remain lower than those for fuel vehicles.
In an effort to provide a longer period of adaptation, the government has stated that the increase in EV license fees is intended to be gradual. The spokesperson also expects EVs to remain appealing due to lower energy, repair, and maintenance costs.
The government has also announced an increase in penalties for illegal parking and 19 other traffic violations by 25-50%. However, there have been no specific increases in penalties for traffic violations mentioned in the documents or news summaries found.
As the EV market in Hong Kong continues to expand, a wider range of electric vehicle brands and models are expected to be available in the market. For those seeking precise figures or policy updates on licence fees for EVs versus fuel vehicles in Hong Kong, it is advisable to consult the Hong Kong Transport Department or the Financial Services and the Treasury Bureau for the latest official plans and fee schedules.
In light of the budget shortfalls, the Hong Kong government is augmenting revenue by incrementing tolls at two tunnels and escalating metered parking fees. This financial adjustment is part of a broader strategy to address the deficits accumulated over the past three business years.
In contrast to these rises, the government has announced a gradual and annual escalation of EV license fees over the next five years, with the initial phase taking effect from November 1, 2023. Despite this increase, the exact percentage increments in EV license fees over this period have yet to be detailed.
