3 days ago
Hong Kong's legislature passes bill to increase airport departure tax to HK$200, effective from Oct 1
Hong Kong's airport departure tax will increase to HK$200 starting from October 1, after lawmakers passed a bill on Wednesday to green light the raise.
Out of 84 lawmakers who took part in the vote on the Air Passenger Departure Tax (Amendment) Bill 2025, 77 voted in favour.
Two lawmakers voted against the bill while five abstained.
The increase will see the city's airport departure tax for adults rise from the current HK$120 to HK$200, representing a 67 per cent hike.
The tax is built into the cost of flight tickets, and those purchased before October 1 will not be affected.
Joseph Chan, the acting secretary for financial services and the treasury, said in the Legislative Council on Wednesday that the tax hike is expected to bring the government an additional revenue of around HK$1.6 billion.
He acknowledged that some lawmakers had expressed worry that the increase would weaken the competitiveness of the Hong Kong International Airport, but said the government has already struck a balance between increasing revenue and reducing the impact on passengers.
The official added that the airport departure tax has not been increased in 22 years, and that the government believes a raise of HK$80 was affordable.
Perry Yiu, a lawmaker for the tourism sector, was one of the two who voted against the bill. He criticised the government for rejecting the industry's proposal for a phased tax increase and halving the raise, adding that the higher tax would negatively affect the economy's recovery.
Gary Zhang, a legislator who also voted down the bill, said the government did not provide a scientific analysis into the impact of the tax raise on different groups of passengers, especially those preferring budget airlines.
Exemptions expanded
Currently, passengers who arrive and depart Hong Kong within the same day are exempted from the airport departure tax.
Chan said authorities are planning to extend the exemption to those departing within the next day, meaning those who stay in the city for less than 48 hours would not have to pay the tax, following lawmakers' suggestions.
The government also plans to exempt those transiting through the airport after arriving via land or sea ports, a move to attract more passengers from the Greater Bay Area, Chan said.
He said the government is drafting relevant subsidiary legislation and will submit it to the legislature 'as soon as possible' to allow the two exemptions to be implemented on October 1.
'I would like to emphasise that the two exemptions… are expected to significantly enhance the competitiveness of the Hong Kong International Airport for transit passengers, and these transit travellers will also drive… the hotel, dining, and retail sectors in Hong Kong,' Chan said in Cantonese.
