Applications invited for Light Buses Using Cleaner Fuel Incentive Scheme

The Transport Department (TD) today (August 23) announces that applications for the incentive scheme to encourage owners of diesel public and private light buses to replace their vehicles early with ones that are run on liquefied petroleum gas (LPG) or electricity will be accepted from August 27, 2002.

A TD spokesman said: "We have sent by mail a pamphlet on the incentive scheme to every registered light bus owner to explain to them the eligibility criteria and application procedures of the incentive scheme."

Pamphlets and application forms of the incentive scheme are available at the Licensing Offices of the Transport Department, the four Vehicle Examination Centres of the Transport Department and the District Offices.

They can be downloaded from the TD homepage (www.info.gov.hk/td). Enquiries about the scheme can be made at TD hotline 2804 2600 round-the-clock.

He said: "With effect from August 27, eligible diesel public light bus owners who replace their diesel public light buses with an LPG or electric one can apply for a one-off grant of $60,000 or $80,000 respectively. Eligible diesel private light bus owners who replace their diesel private light buses with an LPG one can apply for remission or refund of the first registration tax (FRT) of the replacement LPG private light bus

Currently, electric vehicles, including electric private light buses, are exempted from paying FRT. The FRT for a light bus is four per cent of its taxable value.

To encourage early replacement, owners of diesel light buses aged 10 or above at the time of de-registration can apply for the incentive until the end of 2004.

For owners of diesel light buses below 10 years of age at the time of de-registration, the deadline would be end of 2005.

The one-off grant or the FRT refund where applicable will also be made available to owners of diesel light buses who have already made the switch to LPG or electric models before August 27, 2002.

In 1999, the Government pledged to implement a comprehensive motor vehicle emission reduction programme to improve the air quality.

The spokesman said: "To encourage existing diesel light bus owners to replace their vehicles with LPG or electric ones is part of the measures being implemented."

Other measures that have been or are being implemented include:

replacing all diesel taxis with ones that are run on LPG; over 85 per cent have made the change to date; introducing ultra-low sulphur diesel for use by all diesel vehicles; retrofitting older diesel vehicles with particulate reduction devices; increasing the fixed penalty on smoky vehicles; and tightening the emission requirements of newly registered vehicles in step with the European standards.

Upon full implementation of the programme, it is expected that the emission of particulates and nitrogen oxides, the two major pollutants in our air, from motor vehicles will be reduced by 80 per cent and 30 per cent respectively by end 2005.

End/Friday, August 23, 2002