Financial Services Bureau (DSF) Director Iong Kong Leong Thursday announced details of a vehicle tax rebate scheme for vehicle owners affected by Super Typhoon Hato.
According to Iong, the government proposes a cap of 140,000 patacas on the tax rebate for cars.
Iong first revealed the scheme last week during a press conference, jointly attended by officials from a number of government entities, about the government’s ongoing Hato disaster relief measures. The scheme will benefit vehicle owners affected by the disaster if they buy a new one to replace a vehicle damaged by the typhoon, such as by flooding or falling objects.
The super-typhoon killed 10 and injured 244 in Macau on August 23. During the Hato onslaught, a large number of 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. Other vehicles were damaged by uprooted trees, severed tree branches and other objects
According to Macau Post Daily, Iong said the proposed vehicle tax rebate scheme would be applicable to owners of cars, scooters and motorcycles.
Iong said that the vehicle owners would have to cancel the registration of their damaged vehicles before they can benefit from the tax reduction. The deadline for the cancellation is September 18.
According to Iong, if the affected car owner buys a new car, 80 percent of the tax paid for the damaged car will be deducted from the tax on the new car.
According to Iong, the deductions that the vehicle owner can enjoy will be based on the depreciation of their damaged vehicle – how old the vehicle was when it was damaged.
Iong said that if the damaged vehicle had been registered for less than a year before August 23, no depreciation will need to be taken into account.
According to Iong, if the affected vehicle owner buys a new-energy vehicle, all the tax paid for the damaged vehicle, depending on its age, will be returned to the vehicle owner. There is no vehicle tax on the purchase of new-energy vehicles, such as electric vehicles, natural gas vehicles and solar-powered vehicles, Iong pointed out.
Iong noted that there will be a cap on the tax reduction that the vehicle owner can enjoy – 140,000 patacas for cars and 5,500 patacas for scooters and motorcycles. He acknowledged that some of the damaged vehicles may be expensive ones for which the owners paid a lot of tax.
Iong pointed out that, according to the Macau Basic Law, all tax-related amendments need to be passed by the legislature. He said that the government planned to submit a bill on the proposed vehicle tax rebate scheme to the legislature after its new term starts in the middle of October.
According to Iong, vehicle owners affected by Hato can enjoy a tax deduction of at least 8,000 patacas for cars and at least 2,000 patacas for scooters and motorcycles.
Iong said that vehicle owners will not be eligible for the scheme if they choose to buy a second-hand vehicle.
Meanwhile, Transport Bureau (DSAT) Director Lam Hin San said at the press conference that 1,010 vehicle registrations had been cancelled since the day Hato hammered Macau. Lam said that about 90 percent of the cancellations were due to typhoon-induced flooding.