The 2026-27 Budget confirmed the One-for-One scheme will not be renewed after March 31, 2026. Orders placed on or before 25 Feb can still qualify even if registered after the deadline.
Updated 26 Feb 2026
One-for-One Replacement Scheme
Scrap your old petrol or diesel car, buy a new electric one, and the government waives up to HK$172,500 of your first registration tax. No old car? You can still save up to HK$58,500.
Scheme closes March 31, 2026. Will not be renewed.
The 2026-27 Budget confirmed this concession ends for good. Register before the deadline.
You save
HK$172,500
No old car?
HK$58,500
EV price cap
HK$500,000
Deadline
Mar 31, 2026
The 2026-27 Budget confirmed this scheme will not be renewed after March 31, 2026.
Updates
01
How it works
Here's the short version. The Hong Kong government wants fewer petrol and diesel cars on the road. So they created a deal: scrap your old car and replace it with a new EV, and they'll waive up to HK$172,500 of your first registration tax.
Don't have a car to scrap? You can still save up to HK$58,500 on any EV with a taxable value under HK$500,000.
The scheme launched in 2018 to boost EV sales. In 2021, the concession peaked at HK$287,500, and registrations surged. The current version (since 2024) lowered the cap to HK$172,500 and added a strict cutoff at HK$500,000 taxable value. The deadline is March 31, 2026, and the 2026-27 Budget confirmed the scheme will not be renewed.
02
Tax breakdown
Every new car in Hong Kong gets hit with a first registration tax. The tax rate goes up the more expensive the car is. The first HK$150,000 of your car's value is taxed at 46%. The next HK$150,000 jumps to 86%. And so on.
| Portion of taxable value | Tax rate | Max tax in this portion |
|---|---|---|
| First HK$150,000 | 46% | HK$69,000 |
| Next HK$150,000 | 86% | HK$129,000 |
| Next HK$200,000 | 115% | HK$230,000 |
| Above HK$500,000 | 132% | No cap |
Example: a car with a taxable value of HK$300,000 pays HK$69,000 (46% on the first HK$150,000) + HK$129,000 (86% on the next HK$150,000) = HK$198,000 total tax. The One-for-One concession wipes up to HK$172,500 of that.
The HK$500,000 cutoff. This is all-or-nothing. If your EV's taxable value goes over HK$500,000, you don't get a smaller discount. You get no discount at all. Full tax, no concession. If your car is close to the line, check the exact taxable value with your dealer.
Sticker price ≠ taxable value. The price you see on the sticker isn't what gets taxed. Hong Kong Customs calculates a “taxable value” based on landing costs plus distributor margins. Tesla sells directly, so their full price is taxable. Brands like BYD may have a lower taxable value, even at a similar retail price.
03
How to apply
Scrapping your old car, cancelling its registration, and registering your new EV. All of it needs to be done by March 31, 2026. The scheme will not be renewed, so this is the final deadline.
Keep your number plate
OptionalWant to keep your old plate? Fill out Form VRM101 at the Transport Department. It costs HK$560, and your retention certificate is good for 12 months.
Scrap your old car
RequiredTake it to a government-licensed scrapping company. They'll give you a Vehicle Scrapping Certificate. Only authorized operators count. Using anything else is fraud.
Browse scrapping companiesGet your paperwork together
You'll need your original VRD, vehicle license, scrapping certificate, HKID, and (if applicable) your plate retention certificate.
Pick your new EV
It needs to be EPD-approved, and the taxable value has to be under HK$500,000 to qualify for the concession.
Submit your forms
File three forms with the Transport Department: TD22 (registration), TD628 (One-for-One application), and TD559 (licensing).
Get your tax savings
Up to HK$172,500 gets applied directly to your new EV's registration tax. Done.
License fee refund. If your old car's license still has 60+ days left when you cancel it, the Transport Department will automatically send you a refund. But heads up, the One-for-One paperwork can take 1 to 3 months, so don't wait until the last minute.
Required forms
Application for Registration and Licensing of a Vehicle
The main form to register your new EV
Application for One-for-One Replacement Scheme
Your One-for-One application. Submit it with TD22
Vehicle Licensing Form
You need this to actually drive your new EV
Retention of Registration Mark
Only if you want to keep your old plate. Costs HK$560
Supporting documents
- Original Vehicle Registration Document (VRD)
- Original vehicle license (if still valid)
- Vehicle Scrapping Certificate (from a government-licensed scrapping company)
- HKID or dealer staff ID
- Certificate of Personalized Registration Mark (only if keeping your plate)
04
Frequently asked questions
What is the One-for-One scheme?+
It's a Hong Kong government program with a simple deal: scrap your old petrol or diesel car, buy a new electric one, and the government knocks up to HK$172,500 off your first registration tax. The idea? Fewer gas cars on the road, more EVs, without growing the total number of vehicles in Hong Kong.
How much can I save?+
If you're scrapping an old car: up to HK$172,500. Not scrapping anything? You can still save up to HK$58,500 on any EV with a taxable value under HK$500,000.
What's the HK$500,000 limit?+
Think of it as an all-or-nothing rule. If your EV's taxable value is HK$500,000 or less, you get the full concession. Go even one dollar over? You get nothing. Zero discount. There's no partial credit, so it's worth double-checking your car's taxable value before you commit.
What documents do I need to scrap my car?+
You'll need four things: your original Vehicle Registration Document (VRD), your vehicle license (if it's still valid), the scrapping certificate from a government-approved scrap yard, and your HKID. If a dealer is helping you, they'll need their staff ID too.
Can I keep my number plate?+
Yes! Fill out Form VRM101 with the Transport Department before you scrap your old car. It costs HK$560, and you'll get a certificate that holds your plate for 12 months. Just make sure the name on the certificate matches exactly with whoever's registering the new EV.
Can I save without scrapping a car?+
Absolutely. Even if you don't have an old car to scrap, you can still get up to HK$58,500 off your registration tax, as long as the EV's taxable value is under HK$500,000.
Will the scheme be extended after March 2026?+
No. The 2026-27 Budget confirmed the scheme will not be renewed. The government cited market maturity, noting EV adoption has surged from 24% in 2021 to over 70% of new registrations today. There is a grace period: if you ordered your EV on or before February 25, 2026, you can still claim the concession even if the car is registered after March 31. New orders from February 26 onwards must be registered by the deadline.
Can I get a refund on my old car's license fee?+
Yes. If your license has 60 or more days left when you cancel it, the Transport Department will automatically process a refund through the Treasury. One thing to watch out for: the One-for-One paperwork can take 1 to 3 months, which could eat into those 60 days. Plan ahead.
Can I use any scrap yard?+
Why do similar cars sometimes have different taxes?+
Good question. The tax isn't based on the sticker price. It's based on something called 'taxable value,' which Hong Kong Customs calculates from the landed cost plus distributor margins. Tesla sells directly to you, so their entire price gets taxed. Brands like BYD use traditional distributors who can exclude some marketing costs, meaning lower tax even at a similar price.