The "One-for-One Replacement" scheme was launched by the Hong Kong government in 2018 and was originally scheduled to end on March 31, 2024. However, it has been extended until March 31, 2026, with reduced tax exemptions for first registrations. From April 1, 2024 to March 31, 2026, the maximum tax reduction for regular electric private cars is HK$58,500. Eligible fuel car owners can arrange to dismantle their existing private cars, cancel their registration, and then register a new electric vehicle to receive a maximum tax reduction of up to HK$172,500. The program aims to reduce the number of fossil fuel cars on the roads by helping interested car owners purchase electric vehicles at a lower cost.
"One-for-One Replacement" Scheme for Electric Cars
"One-for-One Replacement" Scheme for Electric Cars
To encourage owners of fuel-powered cars to switch to electric vehicles, the Hong Kong government has introduced the "One-for-One Replacement" scheme. Under this program, private car owners can enjoy incentives by arranging to dismantle and cancel the registration of their eligible old private cars and then registering a new electric vehicle. They can receive a maximum tax reduction of up to HK$172,500 for the first registration. The goal is to encourage car owners to replace fossil fuel cars with more environmentally friendly electric vehicles. This article provides relevant information about the scheme, helping owners learn the eligibility of their private cars for the “One-for-One Replacement” scheme and ensure their smooth application to switch to a new electric car.
To participate in the "One-for-One Replacement" electric vehicle scheme, the existing private car must meet the following four conditions to qualify for the tax reduction:
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| First registered in Hong Kong 6 or more years ago | Registered under your name for 18 months or more | Licensed for at least 10 months (i.e. 304 days or more) within the 12 months immediately before its de-registration | The period between the de-registration date of the old vehicle and the sub-mission date of the first registration application for the replacement vehicle must not exceed 3 months |
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First registered in Hong Kong 6 or more years ago |
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Registered under your name for 18 months or more |
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Licensed for at least 10 months (i.e. 304 days or more) within the 12 months immediately before its de-registration |
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The period between the de-registration date of the old vehicle and the sub-mission date of the first registration application for the replacement vehicle must not exceed 3 months |
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| 1. Evaluate your vehicle eligibility for the One-for-One Replacement Scheme | 2. After you have arranged for your old vehicle to be scrapped, we can assist in its de-registration, including retention of the current registration mark, if necessary | 3. Apply for tax concession under the One-for-One Replacement Scheme from the Transport Department |
1. Evaluate your vehicle eligibility for the One-for-One Replacement Scheme |
2. After you have arranged for your old vehicle to be scrapped, we can assist in its de-registration, including retention of the current registration mark, if necessary |
3. Apply for tax concession under the One-for-One Replacement Scheme from the Transport Department |
The current calculation method for the first registration tax of new private cars in Hong Kong is as follows:
- On the First HK$150,000: 46%
- On the Next HK$150,000: 86%
- Subsequent HK$200,000: 115%
- Remaining amount: 132%
For example, consider the smart #1 Premium, which has a retail price of HK$299,000. The original first registration tax would be HK$197,410. Through the "One-for-One Replacement" scheme, the car owner can enjoy partial tax exemption, resulting in a reduced first registration tax of only HK$24,910, which is an 87% reduction in tax expenses and significant cost savings when purchasing an electric vehicle.
| smart #1 Premium selling price before tax | HK$285,752.7 |
| On the First HK$150,000 x 46% | HK$69,000 (tax) |
| On the Next HK$135,752.7 x 86% | HK$116,747 (tax) |
| Total tax payment | HK$185,747 |
| Tax reduction under “One-for-One Replacement” scheme | - HK$172,500 (actual tax payment only in HK$13,247) |
| Price under “One-for-One Replacement” scheme | HK$299,000 |
The smart #1 Pro+ is priced at HK$269,000 before tax. Under the "One-for-One Replacement" Scheme, you can enjoy a full first registration tax reduction of up to HK$ 172,500 without paying any additional tax.
To purchase a new electric vehicle through the “One-for-One Replacement” scheme and apply for a tax reduction on first registration for private cars, car owners need to follow these application procedures:
- Check whether the old private car qualifies for the “One-for-One Replacement” scheme.
- Arrange for the dismantling of the old private car.
- Complete the cancellation of the registration for the dismantled old private car.
- Submit the first registration application for the new electric vehicle and apply for the “One-for-One Replacement” program to receive a higher tax exemption amount.
smart Hong Kong provides a "One-for-One Replacement" scheme enquiry service.
If you have any questions, please feel free to contact our smart product specialist.
