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HONG KONG - Hong Kong's top official proposed Wednesday that the government spend 3.2 billion HK dollars to encourage early replacement of high emission vehicles.

The plan will involve replacing 74,000 pre-Euro and Euro I diesel commercial vehicles with Euro IV vehicles, said Donald Tsang, chief executive of the Hong Kong Special Administrative Region, while delivering his policy address at the Legislative Council.

"We will allow pre-Euro vehicle owners 18 months and Euro I vehicle owners three years to take up the offer," he said.

Upon completion of this program, emissions of nitrogen oxide and respirable suspended particulates in Hong Kong will be reduced by 10 percent and 18 percent, respectively, Tsang said.

A 30 percent reduction in first registration tax will be given to people purchasing vehicles with low emissions and high fuel efficiency, subject to a ceiling of 50,000 HK dollars per vehicle, he said.