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The Legislative Council passed a resolution today (October 8) to increase the air passenger departure tax (APDT) from $80 to $120. The increase will take effect on January 9, 2004.

Today's resolution will put into effect the proposed increase in APDT announced in the 2003-04 Budget.

The tax increase will generate additional revenue of $400 million for the Government in a full year, easing the Government's fiscal deficit by providing an additional and stable source of recurrent revenue.

In moving the resolution, the Secretary for Financial Services and the Treasury, Mr Frederick Ma, said, "The increase in APDT will help relieve the deficit problem without affecting people's livelihood."

He noted that even with the tax increase, the ADPT is still a relatively small amount compared with the average price of an air ticket, and thus will not hinder the development of tourism.

The implementation of the proposal to raise the APDT was postponed because of the SARS attack earlier this year. The Government and the Airport Authority introduced a series of relief measures and initiatives to boost the aviation and tourism industries. With the concerted efforts of various sectors, the aviation and tourism industries have revived quickly.

Ends/Wednesday, October 8, 2003

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