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Tax deduction for environmental-friendly vehicles tightened

Government officials explain additional information of the new arrangement to representatives of the sector.

Effective today, environmental-friendly motor vehicles will have to meet higher emission standards in order to be eligible for tax deduction, according to the SAR Gazette. Under the new arrangement, only 88 of the previously allowed 134 models are now eligible for a 50 per cent tax deduction, with a ceiling of 60,000 patacas. Purchases or orders made before 7 April will still get the earlier arrangement but transaction would have to be completed within 180 days from today: relevant documents have to be submitted to the Transport Bureau and the Financial Services Bureau. According to the Chief Executive despatch in the Gazette, the mileage of a “green” vehicle weighing 1,516 kg to 1,766 kg has increased to 15.5 kilometres per litre from 13.6 kilometres per litre, by both European and Chinese testing procedures. For more details of vehicle models, please visit the website of the Financial Services Bureau (http://www.dsf.gov.mo/?lang=en).

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