Why Is Hong Kong Ending EV Tax Breaks? Does It Make Sense? - CleanTechnica

Hong Kong is ending its substantial electric vehicle (EV) tax breaks by March 31, 2026, a policy shift justified by the government’s view that the local EV market has matured sufficiently. The current incentives offer up to HK$172,500 (about US$22,047) for EV purchases with trade-ins, but with EVs now accounting for 70% of new vehicle sales and 16% of all registered vehicles, Financial Secretary Paul Chan Mo-po argues that the market no longer requires such subsidies. This decision has sparked a surge in EV purchases as buyers rush to take advantage of the expiring tax breaks, with some dealers reporting a 17-fold increase in sales. Despite Hong Kong’s leadership in EV adoption—boasting one of the highest EV market shares globally, second only to Norway—critics worry that ending the tax breaks could slow the transition away from fossil-fueled vehicles. Some, including taxi drivers, have expressed dissatisfaction, fearing reduced incentives to switch to