Budget Speech


167.    The Government will continue its endeavour to improve the environment and combat climate change.

168.    Following the allocation of $200 million last year, I will set aside another $800 million this year to further promote the installation of renewable energy facilities at government buildings, venues and community facilities.  The Government will also enhance tax concessions for capital expenditure incurred by enterprises in procuring eligible energy efficient building installations and renewable energy devices by allowing tax deduction to be claimed in full in one year instead of the current time frame of five years.  The Environment Bureau will announce the details later.

169.    To improve roadside air quality and reduce air pollutant emissions in a sustained manner, we will continue to encourage walking and the use of public transport, and take forward other initiatives, such as promoting the use of electric vehicles.  The current first registration tax (FRT) concessions for electric vehicles will cease on 31 March 2018.  Taking into account factors such as the technological development and market situation of electric vehicles, road traffic conditions and views of stakeholders, the Government has decided to continue to waive in full the FRT for electric commercial vehicles, electric motor cycles and electric motor tricycles until 31 March 2021.

170.    As for electric private cars, on the one hand, the Government has to contain the number of private cars to prevent traffic congestion and aggravation of roadside air pollution; on the other hand, we hope to encourage car owners to go for electric vehicles as far as possible.  Hence, apart from continuing with the current FRT concession of up to $97,500, we will also launch a "one-for-one replacement" scheme from today to allow eligible private car owners who buy a new electric private car and scrap an eligible private car they own to enjoy a higher FRT concession of up to $250,000.  The above concessions will remain in force until 31 March 2021.  The Environmental Protection Department and Transport Department will announce the details later.



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