Hong Kong to raise airport departure tax by 67% to HK$200 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. Explaining the government’s principles of fiscal prudence, he highlighted the importance of managing expenditure growth, making good use of fiscal resources and identifying new revenue streams. “[Our principles are] to maintain the competitiveness of Hong Kong’s simple and low tax regime, and to avoid a considerable increase in tax rates or introducing new taxes,” he said. The government also scaled back tax cuts for taxpayers. For 2.14 million taxpayers, salaries tax and tax under personal assessment for 2024-25 would be reduced by 100 per cent, capped at HK$1,500. The ceiling last year was HK$3,000. Profits tax for 165,400 businesses will also be reduced by 100 per cent, capped at HK$1,500, half of last year’s ceiling. Both domestic and non-domestic properties will be offered a rate concession, capped at HK$500 for each property for the first quarter of 2025-26, also half of last year’s ceiling. The government also announced tax incentives to foster certain industries, including maritime services. There will be a tax deduction on ship acquisitions costs for ship lessors under an operating lease and a planned half-rate tax concession to eligible commodity traders. To accelerate the development of intellectual property-intensive industries, authorities will also review tax deduction arrangements for expenditures related to the sector, such as licensing fees for acquiring the rights to use IP. https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3300190/hong-kong-raise-airport-departure-tax-67-hk200-later-2025 (ICE HONG KONG)

Fonte notizia: South China Morning Post