Hong Kong considers additional tax exemptions for air transit travellers
City currently plans to raise air passenger departure tax to help address deficit, but lawmakers fear move may drive travellers elsewhere
Hong Kong authorities have proposed providing more tax exemptions for transit travellers as lawmakers voiced concerns that raising the air passenger departure levy could divert visitors to neighbouring competitors.
Andrew Lai Chi-wah, permanent secretary for the Financial Services and the Treasury Bureau, said on Tuesday that a further relaxation of the air passenger departure tax would 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 on October 1, the city will increase its air departure tax from HK$120 (US$15.40) to HK$200 per passenger. The move is expected to generate about HK$1.6 billion per year in government revenue.