Average cost of EV licence in Hong Kong could rise 536% under government proposal

The average cost of an electric vehicle (EV) licence in Hong Kong could increase by more than 500 per cent over the next five years, authorities have said, adding that they will raise the tolls at two tunnels by 60 per cent amid a significant budget deficit.

The proposed measures announced by the Transport and Logistics Bureau on Wednesday also included doubling metered parking fees and a 25 to 50 per cent increase in penalties for illegal parking and 19 other traffic violations.

The suggested fee rises underline the Hong Kong government’s efforts to raise more revenue after it recorded deficits for the past three financial years.

A government spokesman said that under the proposals, the EV licence fees would be raised annually over the next five years to allow the public “a longer period of adaptation”. The first phase will launch from November 1 this year.

He stressed that the fees would still be lower than those paid by motorists using fuel vehicles, to encourage people to switch.

“As electric vehicles become increasingly popular, with a wider range of brands and models available on the market, and given that electric vehicles have lower energy, repair and maintenance costs compared to fuel-propelled vehicles, we expect that electric vehicles will remain appealing to motorists even after the rationalisation of annual licence fee structure and levels,” the spokesman added.