The scope of passengers exempted from paying the air passenger departure tax (APDT) will be expanded from October 1 under amendments to the Air Passenger Departure Tax Ordinance, the Government announced today.
The ordinance currently allows certain classes of passengers to be exempted from the APDT, including children aged under 12, direct transit or connecting flight passengers, passengers arriving at and depart from Hong Kong by aircraft on the same day, and passengers arriving at Hong Kong International Airport (HKIA) by vehicle via the Hong Kong-Zhuhai-Macao Bridge or by ship and subsequently depart by aircraft while remaining within the restricted area at all times before departure.
The exemption scope will be expanded to include passengers arriving at HKIA by aircraft and departing from the airport by aircraft on the arrival day or on the following day, which is a maximum of 48 hours.
Passengers arriving in Hong Kong through immigration controls by means other than by aircraft and departing from HKIA by aircraft on the arrival day or on the following day, which is a maximum of 48 hours, will also be included for the APDT exemption.
An exclusionary provision will be incorporated into the amendment order to prevent people from making a brief return trip between Hong Kong and the Mainland or Macau deliberately to be eligible for the exemption.
The Budget announced an APDT increase from $120 to $200 per passenger. Noting that while the increase will only have a minimal impact on air passengers as it constitutes a very small portion of the overall travelling cost of the public and tourists, the Government said that having considered the stakeholders’ view, new exemptions were made to enhance the competitiveness of the airport.
The two new exemptions will take effect on October 1, together with the new tax rate of the APDT. Passengers arriving in Hong Kong on or after that day and meeting the criteria will be exempted.
Based on air passenger traffic statistics in 2024, the two exemptions could benefit about 830,000 air transfer passengers and about 2.5 million intermodal transfer passengers annually, leading to a potential revenue foregone of about $670 million per year.
The Government said the new exemptions can attract more passengers to use HKIA. As there will be more transfer passengers spending on hotel accommodation and local consumption during their stay, the exemptions are expected to bring about positive economic benefits.
The Air Passenger Departure Tax Ordinance (Amendment of Second Schedule) Order 2025 will be published in the Gazette on June 13 and tabled at the Legislative Council on June 18.
The Government will engage the Airport Authority to handle refund applications centrally for all eligible passengers. The airport will set up a new e-application platform for passengers to apply for the refund by cash at the airport or by other means such as credit cards and electronic payment platforms.
