Ron Lam labels Macau as a ‘tax haven’ for luxury EVs

Macau has become a prime destination for luxury electric vehicle buyers, largely due to unrestricted tax exemptions for electric cars, according to lawmaker Ron Lam.

In a written submission to the government, Lam criticized the current tax exemption policies, arguing they are “not only a waste of public funds, but also do not achieve the objective of promoting long-term environmental protection.”

“Macau has been granting tax exemptions to electric vehicles. Although the measures are favorable to the popularization of electric vehicles, there are no restrictions on the number of electric vehicles that can be owned or their maximum price, turning Macau into a tax haven for luxury electric vehicles,” Lam said.

As an example, Lam noted that a luxury electric car that sells for approximately HKD838,000 in Hong Kong can be purchased for only HKD428,000 in Macau. This results in around HKD4 million less tax revenue for each car, while the “environmental benefits obtained are not very significant,” he said.

Lam has called on authorities to establish “clear criteria for categorizing environmentally friendly vehicles” and consider setting a maximum limit on the amount of tax relief available.

He also suggested promoting a “one-for-one” scheme to encourage vehicle owners to replace their old vehicles with new electric ones.

Furthermore, Lam questioned the exemptions for long-range fossil fuel vehicles and called for updating vehicle tax regulations to tax different vehicle types more reasonably and encourage businesses to buy electric trucks and vans.

The lawmaker’s request aimed to address these issues and better achieve environmental goals through tax policy reform.

Victoria Chan