Call for a land-departure tax fails to get off ground

Cheng Wong and Ayra Wang

Financial Secretary Paul Chan Mo-po ruled out introducing a land-departure tax, citing concerns over its impact on the public.

This came as the government announced to increase the departure tax for air passengers to HK$200 from HK$120 per traveler while border construction fees for northbound private vehicles are being considered.

During a radio program yesterday, listeners suggested implementing a land-departure tax to further bolster government income.

One caller, Wong, suggested the government tap into the large number of Hongkongers traveling to the mainland to shop. Another caller, Lam, proposed a modest tax of HK$10 to HK$20, arguing it would significantly benefit public coffers without burdening travelers.

But Chan said: "Those living in Hong Kong via land routes use different checkpoints and modes of transportation, such as buses and tour coaches.

"Many of them are students or workers commuting daily to the mainland and the government's priority is to reduce the impact on the general public."

Chan added that the decision to raise the air-departure tax was made because it represents a smaller proportion of overall ticket prices, which he believes people can afford.

Chan also said the government is studying a segmented fare system for buses, with discussions under way with bus operators, in addition to the adjustments on HK$2 public transportation fare concession scheme.

The government has decided to introduce an 80 percent discount for trips over HK$10 and capping concessionary trips at 240 per month, with the implementation expected by September next year.

He pointed out the need to maintain a flexible mechanism to support seniors who are still working or frequently travel for medical appointments, while noting that the new arrangement indirectly addresses the problem of taking short rides on long-distance routes.

Secretary for Labour and Welfare Chris Sun Yuk-han said the adjustment will not contradict the government's intention to encourage seniors to hang out and develop the silver economy.