Legco passes bill to raise air passenger departure tax
Legco passes bill to raise air passenger departure tax
An increase in the air passenger departure tax is expected to generate an extra HK$1.6 billion in government revenue per year. File photo: RTHK
Lawmakers on Wednesday passed a bill to raise the air passenger departure tax from the current HK$120 to HK$200 from October.
The bill was supported by 77 lawmakers, while two voted against it and five abstained.
Undersecretary for Financial Services and the Treasury Joseph Chan said the authorities earlier accepted a recommendation by lawmaker Perry Yiu that passengers who fly in and out of Hong Kong within 48 hours be exempt from the charge.
But officials rejected Yiu's suggestion to only increase the departure tax to HK$160.
Yiu, who is also an Airport Authority board member, said Hong Kong faces a lot of competition from other nearby airports.
"With the three-runway system, the target is to serve 120 million passengers per year," he said.
"It's a crucial time for Hong Kong to step up efforts to attract travellers and develop the tourism industry. Measures to raise the tax are contrary to this goal."
Yiu voted against the bill.
Other lawmakers who voted in favour described the tax increase as "reasonable" and "mild" when compared with fees at other airports.
Frankie Yick, who represents the transport sector, urged the government to review the impact of the increased tax on the aviation sector, and roll out measures to enhance the airport's competitiveness.
The increased duty is expected to raise an extra HK$1.6 billion for the government each year.
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