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Government to cut tax for Hato-hit vehicle owners

Government will launch a vehicle tax reduction scheme for vehicle owners affected by Typhoon Hato if they buy a new one to replace the vehicles damaged

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UPDATED: 22 Dec 2023, 5:49 am

Financial Services Bureau (DSF) Director Iong Kong Leong said on Thursday that the government will launch a vehicle tax reduction scheme for vehicle owners affected by Typhoon Hato if they buy a new one to replace a vehicle damaged in the severe floods.

According to The Macau Post Daily, Iong made the remarks during a special press conference about the government’s ongoing disaster relief measures for the Hato aftermath. Iong, several other officials and Macao Water and power utility CEM representatives attended the press conference at the Government Information Bureau (GCS) in Nam Van.

The super-typhoon killed 10 and injured 244 in Macau last Wednesday.

During the Hato onslaught, cars, scooters and other vehicles were damaged by severe flooding in streets and underground car parks in the Inner Harbour area, as well as in the districts of Fai Chi Kei and Ilha Verde.

According to Iong, the proposed vehicle tax reduction scheme would be applicable to all kinds of vehicles, including cars, scooters and motorcycles.

According to Iong, if the affected vehicle owner buys a new vehicle, 80 percent of the tax paid for the damaged vehicle will be deducted from the tax that needs to be paid for the new vehicle.

Iong mentioned as an example that if the tax paid for the damaged vehicle was 50,000 patacas and the vehicle owner needs to pay a tax of 60,000 patacas for the new vehicle, he or she would only need to pay, under the proposed tax reduction scheme, 20,000 patacas in tax for the new vehicle.

According to Iong, if the affected vehicle owner buys a new-energy vehicle, all the tax paid for the damaged vehicle will be returned to the vehicle owner. There is no vehicle tax on the purchase of new-energy vehicles, such as electric vehicles and natural gas vehicles, according to Iong.

Iong said that the vehicle owner will have to cancel the registration of their damaged vehicle before they can benefit from the tax reduction.

Iong pointed out that all taxation amendments have to be passed by the legislature. He said that the government would submit a bill on the proposed vehicle tax reduction scheme to the legislature after its new term starts in the middle of October.

Transport Bureau (DSAT) Director Lam Hin San said during the press conference that four public underground car parks were flooded during the Hato onslaught, adding that preliminary data showed that some 700 cars and 200 scooters and motorcycles were damaged in the four car parks.

Lam said the government still did not know the number of vehicles that were damaged by the typhoon-induced flooding in private underground car parks and the streets.

UPDATED: 22 Dec 2023, 5:49 am

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