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Financial Secretary Paul Chan Mo-po on Wednesday announced that first registration tax concessions for electric private cars (e-PCs), including the “One-for-One Replacement” Scheme, will expire on March 31, 2026, and will not be extended.
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Chan explained that electric private car technology has matured, supply is ample, model choices have expanded, and prices have fallen, making e-PCs competitive in the market without further tax support.
The Transport Department confirmed that e-PCs with first registration applications submitted on or after April 1, 2026—based on receipt of completed forms and documents—will no longer qualify for FRT concessions.
Vehicles ordered on or before February 25, 2026, or arranged for shipment to Hong Kong for personal use before that date, remain eligible for the existing concessions even if registered after April 1, 2026.
Local registered distributors, importers, or owners must submit supporting documents to the TD and apply to pay FRT at the pre-adjustment concession rate.
All such applications must be filed by February 24, 2027, under this one-off transitional arrangement.
A government source emphasized that not extending the plan is not a "one-size-fits-all" approach but rather a gradual process.
A government source described the non-extension as a gradual rather than abrupt policy shift.
The government has supported EVs since exempting them from FRT in 1994, capping the concession in 2017, launching the “One-for-One Replacement” Scheme in 2018, and adjusting it in 2024. Transitional measures will be detailed to reduce market impact.
On the 2035 goal to stop new fuel-propelled private car registrations, the source noted the EV market’s maturity: model numbers rose from about 100 in 2021 to around 300 now, prices dropped 23 percent, performance is superior, and charging costs are lower.
A short-term psychological dip is expected, but the government will sustain encouragement through expanded charging infrastructure.
FRT remains fully waived for electric commercial vehicles, electric motorcycles, and electric motor tricycles until March 31, 2028.
EV adoption has grown rapidly in Hong Kong. First-time e-PC registrations jumped from 24 percent in 2021 to over 70 percent in 2025.
Competitive pricing from domestic brands boosted their share; BYD surpassed Tesla as the top-selling EV brand last year.
The updated Hong Kong Roadmap on Popularisation of Electric Vehicles covers five key areas, including commercial EVs and charging networks.
It references the current “One-for-One Replacement” scheme, under which total FRT exemptions exceeded HK$30 billion over ten years, but does not address extension.
In the 2024 Budget, the concession was reduced 40% from HK$287,000 to HK$172,500.
