Hong Kong Announces 2025 Budget Tax Changes

Hong Kong's Financial Secretary Paul Chan Mo-po announced significant changes in the 2025 Budget, including an increase in the airport departure tax from HK$120 to HK$200, effective from the third quarter of 2025, aiming to generate HK$1.6 billion annually. The government believes this will minimally impact air passengers, citing the tax as comparable to other major cities. The Budget also introduces an 80% discount on the HK$2 fare scheme for the elderly and disabled, with a new cap of 240 concessionary trips per month. Additionally, visa and application fees for talent admission and capital investment schemes will rise, expected to increase revenue by HK$620 million. These measures are part of efforts to address a significant deficit and sustain Hong Kong's economy without introducing new taxes.