An incentive scheme to boost the use of environment-friendly commercial vehicles will be launched on April 1, offering first registration tax waivers up to 100%, the Environmental Protection Department says.

Buyers of newly registered commercial vehicles meeting the Euro V qualifying standard will enjoy the following concessions for their first registration taxes:

* 100% waiver for taxis, light buses, non-franchised buses and special-purpose vehicles;

* 50% waiver for goods vehicles except van-type goods vehicles not exceeding 1.9 tonnes permitted gross vehicle weight; and

* 30% waiver for van-type goods vehicles not exceeding 1.9 tonnes permitted gross vehicle weight.

The first registration tax concession is subject to vehicle-class-specific caps per vehicle.

Wider use, greater benefits

A wider use of environment-friendly commercial vehicles can help upgrade roadside air quality. As compared with vehicles complying with the prevailing statutory emission requirements, which are at Euro IV level, Euro V commercial vehicles weighing over 3.5 tonnes emit about 40% less nitrogen oxides. For smaller diesel vehicles, Euro V models emit about 80% less respirable suspended particulate and 30% less nitrogen oxides.

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

Vehicles without a valid environment-friendly commercial vehicle certificate will not be eligible for the concession, so buyers should confirm with vendors the availability of the certificates when considering buying environment-friendly commercial vehicles.

Vehicle owners who opt for environment-friendly commercial vehicles to replace their pre-Euro or Euro I diesel commercial vehicles under the one-off grant scheme introduced last April will also be entitled to the first registration tax concession.

The department will review annually tightening the qualifying standard in light of technological developments to offer the incentive only to vehicles of truly outstanding emission performance outstripping the prevailing statutory requirements. If tightened, the new qualifying standards will be effective on April 1 each year and commercial vehicles meeting only the previous standards will lose their eligibility for the first registration tax cut.

Click here to read a list of environment-friendly commercial vehicle models on the local market, and details of the scheme.