Quantcast
Monday , September 25 2017
Breaking News
Home / International Customs / Hong Kong / Tesla sales in Hong Kong falter after cut in tax breaks
Tesla sales in Hong Kong falter after cut in tax breaks
Bangladesh frozen food exporters seek tax cut in upcoming budget

Tesla sales in Hong Kong falter after cut in tax breaks

HONG KONG: Over in Hong Kong, the slashing of a tax break for electric vehicles (EV) – which came into effect on April 1 – has had an impact on sales of Tesla vehicles in the autonomous territory. Following the move, not a single Tesla model was registered with the transport department in April, the Wall Street Journal reports. The situation improved slightly in May, when five vehicles were registered, but is a far cry from the surge that took place before the rule change – in March, 2,939 Teslas were registered, adding significantly to the sales numbers for the first quarter of the year, when around 3,700 units were shifted.

The introduction of a maximum tax deduction of HK$97,500 (RM53,600) on standard tax for privately-registered EVs, applicable to first-time owners, means that the price of a Tesla has nearly doubled. Online publication Quartz had earlier reported that following the removal of tax breaks, a Model S 60, which went for HK$570,000 (RM313,400) with the tax waiver, would be hiked up to HK$925,500 (RM508,700) in the new structure.

It remains to be seen if the decision to remove tax incentives for EVs will have a significant impact on the sales of such cars. According to news reports, a Tesla Hong Kong representative stated that the company did not have long-term concerns over sales of its cars in the territory. The past three years has seen a boom in EV registrations, and according to statistics listed by the environmental protection department, a total of 11,004 EVs were registered for road use in Hong Kong at the end of May, up from less than 100 in end-2010.