The Legislative Council has passed the Air Passenger Departure Tax (Amendment) Bill after its third reading, which raises the tax from HK$120 to HK$200 per passenger starting from October.

The bill received majority support from lawmakers, with 77 out of 85 votes in favor, two against, and five abstentions.

The tax hike is projected to generate around HK$1.6 billion in annual revenue for the government.

Under Secretary for Financial Services and the Treasury, Joseph Chan Ho-lim, stated that the government has struck a balance between the need to boost government revenue and the impact on passengers.

He noted that the tax was last raised over two decades ago, and the proposed increase aligns with the rate of inflation, believing it will have only a minimal effect on travelers.

Apart from ticket prices, Chan mentioned that passengers would also consider factors such as flight prices, airport connectivity, and surrounding facilities, expressing confidence that the tax hike would not severely deter passengers from utilizing Hong Kong International Airport.

Chan described the additional HK$80 as a reasonable and affordable increase, noting there will be an exception for passengers arriving and departing within 48 hours.

Lawmakers concerned over aviation hub position

Lawmaker Gary Zhang Xinyu expressed concerns that the tax hike could undermine the city's position as an aviation hub, suggesting that more travelers may opt for the neighboring Shenzhen airport as a cheaper alternative.

Another lawmaker, Frankie Yick Chi-ming, indicated that the industry only supported the bill due to the introduction of exemption measures, criticizing the tax hike as contradictory to efforts to attract travelers.

Yick further cautioned that a decrease in flight and passenger traffic could significantly impact the aviation industry, affecting tourism, retail, dining, and transportation sectors.

Lawmaker Rock Chen Chung-nin, also a member of the Airport Authority Board, stressed the importance of attracting more international and budget airlines to the city, urging the government to enhance traveler experiences to retain passenger flow while remaining competitive with other airports.

(Phoebe Poon)

Air passenger departure tax takes off in Oct after bill passes