FINANCIAL SERVICES | Staff Reporter, Hong Kong

What tax measures can the government roll out to boost sustainable development?

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.

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.