Starting from April 1, buyers of newly registered environment-friendly petrol private cars will enjoy a 30% cut in the first registration tax, subject to a ceiling of $50,000 per car, the Environmental Protection Department says.

Environment-friendly petrol private cars emit 50% fewer hydrocarbons and nitrogen oxides and consume 40% less fuel than conventional Euro IV petrol private cars.  Owing to their higher fuel efficiency, they emit 40% less carbon dioxide, a key greenhouse gas contributing to global warming.

To help car buyers choose environment-friendly petrol private cars, the department will issue certificates to cars that comply with the qualifying standards. A vehicle owner who applies with the Transport Department for first registration of his/her private car which is issued with a valid environment-friendly private car certificate will be entitled to the tax cut.

Cars without a valid environment-friendly private car certificate will not be eligible for the tax reduction. Car buyers should confirm with car vendors the availability of the certificates when considering buying environment-friendly private cars.

Standards to be reviewed annually

The qualifying standards will be reviewed and tightened annually in the light of technological advancement to restrict the incentive to cars of truly outstanding emission and fuel-efficiency performance. If tightened, the new qualifying standards are to be effective on April 1 each year and petrol private cars that meet only the previous standards will lose their eligibility for the first registration tax reduction.

Click here to read the list of environment-friendly petrol private car models available on the local market and other scheme details.