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South China Morning Post

Hong Kong considers additional tax exemptions for air transit travellers

The Hong Kong government has proposed providing more exemptions for transit travellers as lawmakers voiced concerns that raising the air passenger departure tax could divert visitors to neighbouring competitors. Advertisement Andrew Lai Chi-wah, permanent secretary for the Financial Services and the Treasury Bureau, said on Wednesday that a further relaxation of the air passenger departure tax will be considered, including extending the exemption to travellers leaving the next day. 'Other international airports have a 24-hour exemption, and our arrangement can be more liberal than that,' Lai said during a Legislative Council meeting. 'So if you arrive shortly after midnight and the flight is on the next day, it means you can stay for longer, almost 48 hours without paying the tax.' Starting October 1, the city will increase the air departure tax from HK$120 (US$15.40) to HK$200 per passenger, projected to generate HK$1.6 billion per year in government revenue. Advertisement The measure, announced by Financial Secretary Paul Chan Mo-po in his latest budget speech in February, is part of efforts to deal with the government's deficit of about HK$87.2 billion for the 2024-25 financial year. The government said in March that certain groups were exempt from paying the tax, including those under 12 years old, direct transit and connecting flight passengers, as well as those arriving and departing Hong Kong by aircraft on the same day.