Financial Secretary Henry Tang Ying-yen's budget proposes introducing environmental taxation to Hong Kong, even though income from a tyre levy accounts for only a very small portion of the cost that taxpayers currently have to bear for polluters.

Environmental taxation is a novel concept in Hong Kong. A small levy rate, and an annual flat-rate, should have a deterrent effect on tyre-dumping. But, mainly, a levy may serve as a learning tool in that polluters realise that they, not taxpayers, must pay for their actions.

A number of developed countries have 'polluter pays' legislation. The levy amount varies with the degree of environmental harm that the industrial or consumer product causes, or will cause. For example, a levy on single-use plastic shopping bags, which are not easily recyclable but put heavy pressure on landfills, has helped reduce their production and consumption.