The Government announced on 28 February 2024 that the first registration tax (FRT) concession arrangement for electric vehicles will be extended for two years up to 31 March 2026. The relevant new FRT concession arrangement for various types of electric vehicles are as follows:

From 1 April 2024 to 31 March 2026*:

(a) For electric private cars (e-PCs):
  i. except for eligible private car (PC) owners (see (a)(ii) below), the FRT concession cap for e-PCs will be adjusted from $97,500 to $58,500.
  ii. the FRT concession cap for PC owners eligible for the "One-for-One Replacement" (OfO) Scheme# will be adjusted from $287,500 to $172,500.
iii. e-PCs with taxable value (i.e. vehicle price before tax) of over $500,000 will no longer be entitled to the FRT concession.
(b) For other types of EVs (i.e. electric commercial vehicles, electric motor cycles and electric motor tricycles): their FRT is waived in full.
  * The date which TD receives the "Application form for OfO Scheme" (Form TD628) and/or "Application for registration and licensing of a vehicle" (Form TD22) and all required supporting documents will be adopted as the submission date.
# The OfO Scheme allows PC owners who arrange to scrap and de-register their own eligible old PC and then first register a new e-PC ("Replacement e-PC") to enjoy a higher FRT concession. Please refer to the ensuring paragraphs for the details of the OfO Scheme.


Click here to access the website of the Environmental Protection Department for more details on promoting the use of EVs.

Exemption for disabled driver purchasing an electric private car

A disabled driver is not liable to pay the motor vehicles first registration tax on the first $300,000 of the taxable value of an electric private car, if he has not registered a motor vehicle subject to the exemption of the motor vehicles first registration tax within the previous 5 years. Besides, he can only be entitled to either the aforesaid first registration tax exemption or the first registration tax concession under the "One-for-One Replacement" Scheme, but not both.

For details and exemption which a disabled person can apply for, please click here.
 
"One-for-One Replacement" Scheme
(Eligibility criteria revised with effect from 28 January 2019)

Registered owner of PCs may consider joining the OfO Scheme by arranging to scrap and de-register his/her "Old PC" and then first registering a "Replacement e-PC" under his/her own name within the effective period of the Scheme (i.e. 28 February 2018 to 31 March 2026, both dates inclusive), if the following eligibility criteria for the Scheme are fully met –
(a) Vehicle class and propulsion – the "Old PC" must be in the vehicle class of private car as defined under the Road Traffic Ordinance (Cap 374) when it is de-registered;
(b) Age – the "Old PC" must have been first registered in Hong Kong for at least 6 years when its registration is cancelled owing to scrapping;
(c) Ownership period – the vehicle owner participating in the OfO Scheme must have been the registered owner of the "Old PC" for 18 months or more, without interruption;
(d) Licensed period – the "Old PC", with or without interruption, must have been licensed for at least 10 months (i.e. 304 days or more) within the 12 months, or at least 20 months (i.e. 608 days or more) within the 24 months, immediately before its de-registration.
(e) Vehicle class and propulsion – the "Replacement e-PC" must be classified as private car as defined under the Road Traffic Ordinance (Cap 374) when it is first registered, and is a private car propelled solely by electric power and does not emit any exhaust gas;
(f) Ownership at first registration – the "Replacement e-PC" must be first registered under the name of the registered owner of the "Old PC" when the latter is scrapped and de-registered;
(g) The scrapping and de-registration of the "Old PC", and submission of first registration application for the "Replacement e-PC" must all be carried out between 28 February 2018 and 31 March 2026, both dates inclusive; and
(h) The de-registration date of the "Old PC" must not be after the submission date of the "Replacement e-PC" first registration application. The period between the two dates must not exceed 3 months.
 
Procedures for participating in the "One-for-One Replacement" Scheme
Key steps consist of the following -
(i) Checking eligibility of the "Old PC" concerned for the Scheme;
(ii) Arranging to scrap the "Old PC" concerned;
(iii) Completing de-registration of the "Old PC" concerned; and
(iv) Submitting first registration application for the "Replacement e-PC" and application for higher FRT concession for the "Replacement e-PC" under the Scheme.
   
For step (iv), according to the Motor Vehicles (First Registration Tax) Ordinance (Cap 330), before a motor vehicle is first registered, the registered distributor / registered importer who is selling the vehicle, or the person who is applying for vehicle first registration (where the motor vehicle is imported other than a registered importer) is liable to pay the FRT. Therefore,
  • if the "Replacement e-PC" is purchased from a registered distributor / registered importer - the application under the OfO Scheme shall be made by the registered distributor / registered importer selling the "Replacement e-PC"; or
  • if the "Replacement e-PC" is imported by the owner for personal use in Hong Kong - the application under the OfO Scheme shall be made by the owner.
The processing of applications for the OfO Scheme would take about 10 working days upon receipt of the duly completed application with all required documents.

"One-for-One Replacement" Scheme Forms and Documents
"How to Participate in the "One-for-One Replacement" Scheme for Higher First Registration Tax Concession for Electric Private Cars", detailing the eligibility criteria and application procedures for the OfO Scheme PDF document icon Download
The application form for the OfO Scheme (TD628) PDF document icon Download
We urge PC owners who intend to participate in the OfO Scheme to read the abovementioned document carefully to comprehend the eligibility criteria and application procedures of the Scheme before arranging to scrap their existing PCs. If a PC owner is not certain whether his / her PC fulfill the eligibility criteria of the Scheme, he / she shall make an enquiry to us. The enquiry channels are detailed in Frequently Asked Question No. 1 below, or they can call the Hong Kong Licensing Office of the Transport Department at 2804 2270 / 1823.
Frequently asked questions
Q1 How can I know whether my existing PC is eligible for joining the OfO Scheme?
A1

You may refer to the "Date of First Registration" and "Date registered as Owner" as shown on the Vehicle Registration Document (VRD) for calculating the current age and current ownership period of the "Old PC". If you would like to know the length of licensed period of the "Old PC" in the last 12 months, you can make an enquiry by e-mail (Address: hklo@td.gov.hk) or in writing (Address: 3/F, United Centre, 95 Queensway, Admiralty, Hong Kong; Attention: Executive Officer/First Registration Tax), accompanied with the digital image or photocopy of the VRD (with signature of the registered owner) of the "Old PC".
 
Q2 Is there any limit for the number of applications under the OfO Scheme involved by a vehicle owner / an applicant?
A2 No.
 
Q3 Is there any FRT exemption / concession for petrol / electric hybrid cars?
A3

The FRT concessions announced in the Financial Secretary's 2018-19 Budget Speech only applies to vehicles propelled solely by electric power and do not emit any exhaust gas. Since petrol / electric hybrid cars are not propelled solely by electric power, they are not entitled to the related FRT concessions.
 
Q4 How can I arrange to scrap my existing PC?
A4

You may make use of the services provided by vehicle scrapping companies for scrapping your existing PC. You are reminded to request a scrapping certificate issued by the vehicle scrapping company, which shall contain the following -

  • chassis number and registration mark of the scrapped vehicle;
  • date and location of vehicle scrapping;
  • name and Business Registration Certificate number of the scrapping company; and
  • signature by the representative of the scrapping company, with company chop.
 
Q5 After my existing PC is scrapped, what should I do to de-register it?
A5

After your existing PC is scrapped, you should submit to the Licensing Office of the Transport Department the duly signed and completed "Notification for Cancellation of Vehicle Registration" (form TD184) which can be downloaded here, or "Application to Transfer or Retain a Vehicle Registration Mark" (form TD129) which can be downloaded here if you wish to retain the registration mark of the scrapped PC at the same time, with required documents for de-registering the PC.
 
Q6 Can I scrap and de-register the existing PC registered under my name and allow my relative / friend to use this PC for participating in the OfO Scheme?
A6 No. The "Replacement e-PC" must be first registered under the name of the registered owner of the "Old PC" when the latter is scrapped and de-registered for enjoying the higher FRT concession under the OfO Scheme.
 
Q7 Can I apply for first registering the "Replacement e-PC" before scrapping and de-registering my existing PC under the OfO Scheme?
A7

No. Under the OfO Scheme, the de-registration date of the "Old PC" must not be after the submission date of the "Replacement e-PC" first registration application. The period between the two dates, which must be between 28 February 2018 and 31 March 2026, must not exceed 3 months.
 
Q8 If I purchase an e-PC from a registered distributor to replace my existing PC, can I make an application for higher FRT concession under the OfO Scheme to the Transport Department direct?
A8 No. If the "Replacement e-PC" is purchased from a registered distributor, the application under the OfO Scheme must be made by the registered distributor selling the "Replacement e-PC".
 
Q9 I plan to import an e-PC into Hong Kong for use, what are the procedures?
A9

Please refer to the Guidelines for Importation and Registration of Pure Electric Vehicle (PEV) and Plug-in Hybrid Electric Vehicle (PHEV) for details, which can be accessed here.
 
Q10 How is the FRT payable for a "Replacement e-PC" under the OfO Scheme calculated?
A10 Under the current FRT rates for PCs (46% on the first $150,000 of vehicle taxable value, 86% on the next $150,000, 115% on the next $200,000 and 132% on the remainder), the FRT payable will be worked out by-
taxable value x FRT rates – applicable FRT Concession Cap (depends on the submission date of the OfO application)

Example
the taxable value of the "Replacement e-PC" is $400,000 and application is submitted on 15 April 2024. If the application is approved, the amount of FRT payable will be
= [($150,000 x 46% + $150,000 x 86% + $100,000 x 115%) - $172,500]
= $313,000 - $172,500
= $140,500
 
Q11 My "Replacement e-PC" under the OfO Scheme is granted the amount of FRT concession less than the cap level. Can the "Replacement e-PC" still enjoy the "unused" FRT concession if I fit optional accessories to / obtain taxable warranties for the "Replacement e-PC" within 6 months after its first registration?
A11 Yes. If the amount of FRT concession granted to a "Replacement e-PC" under the OfO Scheme is lower than the cap level, the "unused" amount of FRT concession will be taken into account for calculating the additional FRT payable upon fitting optional accessories to / obtain taxable warranties for the "Replacement e-PC" within 6 months after its first registration.

Example - the taxable value of the "Replacement e-PC" is $250,000 and the applicable FRT concession cap is $172,500, the FRT concession granted will be $155,000, i.e. no FRT is payable upon first registration. If accessories of value of $50,000 are fitted to the "Replacement e-PC" within 6 months after its first registration, the amount of payable additional FRT will be
= [($50,000 x 86%) - $17,500]
= $43,000 - $17,500
= $25,500
 
Q12 What should I do if the registered distributor is not willing to submit the application under the OfO Scheme for the "Replacement e-PC" I purchased?
A12 The Transport Department has presented the details of the OfO Scheme to registered distributors who sell e-PCs, and explained to them that they shall submit applications under the OfO Scheme for the eligible "Replacement e-PCs" they sell. The vehicle owner concerned can contact Hong Kong Licensing Office of Transport Department (tel: 2804 2270) for follow-up if the registered distributor refuses to submit applications under the OfO Scheme.
 
Q13 What should I do if I could not enjoy the higher FRT concession in full from the OfO Scheme?
A13 The vehicle owner concerned can contact Hong Kong Licensing Office of the Transport Department (tel: 2804 2637) for follow-up.
 
Q14 When I renewed my vehicle licence, I have made a declaration on page 2 of the Application for Renewal of Vehicle Licence (TD558) to apply for waiving the additional fee incurred from the usage of the vehicle during the unlicensed period. Is the unlicensed period indicated in the declaration counted towards the licensed period in Criteria (d) of the OfO Scheme?
A14 No. Completing the above declaration is for waiving the additional fee incurred from the usage of the vehicle during the period after the last licence expires and the new licence becomes operative. The unlicensed period with the additional fee waived is not counted towards the licensed period required in Criteria (d) of the OfO Scheme.
 
Q15 I paid the additional fee for the unlicensed period when I renewed my vehicle licence. Is the period covered by the additional fee regarded as "relicensed" the vehicle? Is that period counted towards the licensed period in Criteria (d) of the OfO Scheme?
A15 No. Payment of the additional fee does not mean that the vehicle is licensed for the period which such fee is charged. TD cannot "relicense" a vehicle for an unlicensed period in the past. In this connection, even if the additional fee is paid, the period covered by the additional fee is considered unlicensed, therefore, such period is not counted towards the licensed period in Criteria (d) of the OfO Scheme.
 
Q16 How to determine the submission date if my application for vehicle first registration or OfO Scheme was returned by TD due to discrepancy between the application form and the document submitted and resubmission is required? Will it affect the amount of concession I can enjoy?
A16 Submission date refers to the date TD received duly completed application with all required documents. It also determines the applicable concession cap.

Example - an applicant submits an OfO application on 20 March 2024 but was returned by TD due to inconsistent information between the application form and the sales contract. He resubmits the application on 10 April 2024 and was accepted by TD.

In the above case, a duly completed OfO application was received on 10 April 2024. Hence, the submission date is 10 April 2024 (instead of 20 March 2024) and the applicable concession cap is $172,500 (instead of $287,500).