Land-departure tax still open for discussion, says Paul Chan

Cheng Wong

The land-departure tax on private cars is still in the planning stage and remains open for further discussion, according to Financial Secretary Paul Chan Mo-po.

Chan noted that over 10 million northbound trips are made by Hongkongers each year, with private vehicle travel representing only about 15 percent.

He believes the impact of launching a land-departure tax on private cars will be relatively small. He stressed that the government has invested significantly in border facilities, which incur maintenance costs, suggesting that some charges should be considered from a "user pays" perspective.

He also noted suggestions to impose a departure tax on high-speed rail passengers, but the authority will not consider it.

Meanwhile, Chan said that significant land has been designated for commercial purposes in the Northern Metropolis, and a comprehensive review of land use will be conducted.

He also noted the Northern Metropolis could benefit from more public-private development models.

As for the Kau Yi Chau Artificial Islands, Chan said land reclamation may be delayed as the government should focus on developing the Northern Metropolis first.

However, he indicated that the development of Kau Yi Chau will depend on demand.

Chan also said artificial intelligence should be promoted as a key industry in Hong Kong as he encourages young people to engage in its development.

cheng.wong@singtaonewscorp.com