The Recycling Fund was launched on 6 October 2015 and is open for applications. The Recycling Fund promotes the recovery and recycling of waste into useful resources and products by facilitating the upgrading of operational capabilities and efficiency in the recycling industry to support its sustainable development.
Several funding schemes provide financial assistance to the recycling industry to encourage research and development into waste minimisation and recycling technologies applicable to Hong Kong. Successful applicants are expected to deliver technological products and solutions that are of widespread and practical use and that can be demonstrated and transferred to other members of the relevant industry, with the benefit of enhancing competitiveness.
Hong Kong is a free port that thrives on free trade. No tariff nor customs duty is imposed upon the import and export of recyclables. In general, the local recycling business is chargeable to profits tax based on the profits it makes. In order to encourage the business community to acquire and use environment-friendly facilities, the government has revised the Inland Revenue Ordinance in 2008 to introduce accelerated tax deduction associated with profits tax. Recycling business operators may apply for the aforementioned deductions under profits tax according to the capital expenditure incurred on the eligible machinery and installations.