Airport departure tax hike faces legislative pushback
A proposed increase in Hong Kong's airport departure tax from HK$120 to HK$200, set to take effect in October, is facing unexpected opposition, with lawmakers warning it could damage the city's aviation competitiveness.
The measure, included in this year's Budget to generate an estimated HK$1.6 billion annually, has drawn criticism across party lines during Legislative Council Bills Committee meetings.
Tourism sector lawmaker Perry Yiu Pak-leung has been particularly vocal, calling for a lower tax of HK$160 while expanding tax exemption periods.
"The sudden increase is too steep and undermines our airport's appeal, especially for budget carriers and transit passengers," Yiu said.
Acknowledging the Financial Services and Treasury Bureau's acceptance of extending tax exemptions for transit passengers departing the next calendar day, he maintains that the overall increase remains problematic.
The bills committee could enter clause-by-clause scrutiny as early as next Monday (Apr 28).
Committee chair Lee Chun-keung confirmed that if Yiu's amendment passes, it would be presented to the full council under the committee's name.
Several committee members have signaled support for moderation. Lawmaker Gary Zhang Xinyu argued for gradual increases, noting that: "What seems a small amount to some represents a significant pricing factor for budget travelers."
Another member, Lam Chun-sing, urged balancing government revenue needs with maintaining Hong Kong's status as an aviation hub.
Aviation industry representatives warn the tax could particularly impact the recovering budget airline sector and transit traffic, which accounts for 20 percent of the city's airport passengers.
Lawmaker Rock Chen Chung-nin, also an Airport Authority board member, cautioned that while long-haul routes have largely recovered, future growth depends on attracting more budget carriers.
Chen also suggested requiring Transport and Logistics Bureau representatives at future meetings to address technical questions as treasury officials seem to lack aviation policy expertise.
However, some lawmakers believe little chance of further concessions on departure tax, given that the government has accepted the tax-free extension for transit passengers.
Some pointed out that the tax increase has a minimal impact on the overall travel costs for passengers and the airport's competitiveness.
(Ayra Wang)
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