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HK Air Pax Departure Tax to Rise to $200 from 1 Oct; Bill to Be Gazetted on Fri
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The Air Passenger Departure Tax (Amendment) Bill 2025 will be gazetted this Friday (7 Mar) to implement the measure announced in the 2025-26 Budget to increase the air passenger departure tax (APDT) from $120 per passenger to $200 with effect from 1 October 2025, according to the Hong Kong government's announcement. The new tax rate will be applicable to air tickets purchased on or after 1 October 2025. It is estimated that government revenue will increase by about $1.6 billion annually. Under the Air Passenger Departure Tax Ordinance (Cap. 140) (APDT Ordinance), certain classes of people are exempted from payment of the APDT, including passengers under 12 years of age, direct transit passengers, connecting flight passengers, passengers who arrive at and depart from Hong Kong by aircraft on the same day, and passengers who arrive at Hong Kong International Airport by vehicle via the Hong Kong-Zhuhai-Macao Bridge or by ship and subsequently depart from Hong Kong by aircraft while remaining within the restricted area at all times before departure. The APDT was last increased more than 20 years ago in 2003-04, a government spokesman said. The proposed increase constitutes only a very small portion of the overall travelling cost for the general public and travelers to Hong Kong. The impact on air passengers is expected to be minimal. Meanwhile, under the APDT Ordinance, airlines and helicopter company collect the APDT from air passengers on behalf of the government, and process applications for exemptions and refunds. The government pays an administration fee to them in return. The Bill also proposes amending the APDT Ordinance to streamline the financial arrangement of the government for handling the administration fee. The Bill will be introduced into the Legislative Council for first reading and the commencement of the second reading debate on 19 March. AAStocks Financial News |
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