The Government announced that it will publish the Air Passenger Departure Tax (Amendment) Bill 2025 in the Gazette on Friday, with an aim to raise the air passenger departure tax (APDT) from $120 per passenger to $200 starting from October 1.
The new tax rate, proposed in the 2025-26 Budget, will be applicable to air tickets purchased on or after October 1 this year. It is estimated that government revenue from the tax will rise by about $1.6 billion annually.
The APDT was last increased more than 20 years ago, in 2003-04.
The Government said the proposed tax increase is expected to have minimal impact on air passengers as the tax constitutes only a very small portion of the overall travel costs borne by the public and travellers to Hong Kong.
In the upcoming bill, the Government also proposes to amend the APDT Ordinance to streamline handling of the administration fee in relation to airlines and helicopter companies collecting APDT on the Government’s behalf and processing applications for exemptions and refunds.
The bill will be introduced into the Legislative Council for a first reading and commencement of a second reading debate on March 19.
