Hong Kong, home to some of the world’s richest and land of one of the steepest income gaps, can boast a low income tax regime and tax-free goods – but not when it comes to high-end cars! I was lucky enough to take part in a Ferrari test-drive event and was shocked at the price tags I saw — which were ranged from HK$3+MM to HK$5+MM!
Of course I had no idea what Ferraris cost in the first place, but it turns out that this sticker price included first time registration tax — which is a whopping 115% in Hong Kong! And don’t think you can get away with the tax by buying your Ferrari elsewhere and then shipping it over – because that too will be heavily taxed!
If you ever want to get into the nitty gritty of this stuff, yes, there is an Ordinance for that, and it’s called the MOTOR VEHICLES (FIRST REGISTRATION TAX) ORDINANCE (Cap 330).