Hong Kong to raise airport departure tax by 67% to HK$200

Finance chief Paul Chan says move will increase revenue by HK$1.6 billion per year, adding impact on air passengers will be minimal

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Financial Secretary Paul Chan has announced the government will raise the airport departure tax to HK$200. Photo: Sam Tsang

Published: 3:04pm, 26 Feb 2025Updated: 5:05pm, 26 Feb 2025

Hong Kong authorities will increase the airport departure tax by 67 per cent to HK$200 (US$26) from the third quarter of 2025, as part of measures to boost revenues and tackle a deficit of HK$87.2 billion.

In his annual budget speech on Wednesday, Financial Secretary Paul Chan Mo-po also stressed that the city had no plans to introduce new taxes and would maintain the competitiveness of “a simple and low tax regime”.

Chan announced that the air passenger departure tax rate would increase from HK$120 to HK$200 starting in the third quarter.

“The government revenue is expected to increase by about HK$1.6 billion per year. The impact on air passengers is expected to be minimal,” he told the Legislative Council.

The airport departure tax exists in many major economies, from about US$40 (HK$311) in the United States to US$42 in Germany and S$52 (HK$301) in Singapore.

The slew of tax-related measures unveiled in the budget did not include tax rises for top earners or the outright legalisation of basketball betting as new revenue sources from duties, as some previously suggested.

Chan only said that the government would “explore regulating” basketball betting activities and invited the Jockey Club to submit a report.