Waiving first-time registration tax for e-vehicles may be a good idea, said EY.
As the government plays a key role in facilitating sustainable development in Hong Kong, accounting and professional services firm EY urged the administration to roll out a series of environmental tax measures which can significantly accelerate the city’s long-term growth process.
For one, the government can consider waiving first-time registration tax on electric vehicles as well as further raising the duty on motor-use leaded petrol to reduce carbon emissions in the city where air pollution levels are alarmingly high, the accounting firm noted in its budget statement.
A full tax deduction for the acquisition cost of plant and machinery employed in recycling businesses should also be taken into account, added EY.
As Hong Kong also plays a key role in connecting countries along the Belt & Road to the Mainland, it should seize the wealth of opportunities for sustainable growth models by introducing a tax exemption for interest income and trading profits derived from green bonds allotted for investments in specified B&R projects.
“We believe that the above green tax measures would help to make Hong Kong a better place to live and do business,” EY added.
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