FRIDAY, MAY 6, 1983
6
AIR PASSENGER DEPARTURE TAX BILL
****
SUBJECT TO THE APPROVAL OF THE LEGISLATIVE COUNCIL, THE PROPOSED AIR PASSENGER DEPARTURE TAX WILL BE INTRODUCED ON JUNE 1.
AS STATED BY THE FINANCIAL SECRETARY IN HIS BUDGET SPEECH, THE INTENTION IS TO ABOLISH THE PRESENT PASSENGER SERVICE CHARGE AND TO REPLACE IT WITH A SPECIFIC TAX ON PASSENGERS DEPARTING HONG KONG INTERNATIONAL AIRPORT BY AIR, WITH A VIEW TO RAISING ADDITIONAL REVENUE OF ABOUT $230 MILLION THIS FINANCIAL YEAR.
HE SAID THEN THAT ALTERNATIVES TO INTRODUCING THE TAX HAD BEEN CONSIDERED BEFORE THE BUDGET WAS PRESENTED BUT THE OPTIONS WERE FOUND TO BE UNFAIR TO OTHER TRAVELLERS WHO WERE LESS WELL OFF, DIFFICULT TO ADMINISTER OR INADEQUATE TO RAISE THE REQUIRED REVENUE TO REDUCE THE 1983-84 DEFICIT.
AT THE MOMENT, OPERATORS OF AIRCRAFT USING KAI TAK AIRPORT ARE REQUIRED TO PAY THE GOVERNMENT PASSENGER SERVICE CHARGES TO HELP MEET THE COST OF SERVICES PROVIDED AT THE AIRPORT. THE CHARGES, AT THE RATE OF $20 FOR EACH PERSON AGED 12 AND ABOVE AND $5 FOR CHILDREN AGED TWO 11 YEARS ARE PASSED ON BY THE AIRLINES TO INDIVIDUAL PASSENGERS.
THE AIR PASSENGER DEPARTURE TAX BILL 1983, WHICH IS PUBLISHED IN THE GOVERNMENT GAZETTE TODAY (FRIDAY), SEEKS TO INTRODUCE INDIVIDUAL TAXES OF $100 AND $50 RESPECTIVELY FOR THE TWO AGE GROUPS.
A GOVERNMENT SPOKESMAN SAID THERE WOULD NOT BE MUCH DIFFERENCE IN THE PROCEDURE OF PAYMENT AS FAR AS PASSENGERS WERE CONCERNED, AS COLLECTION OF THE TAX FROM THE PASSENGERS WILL BE MADE BY AIRLINES OR THEIR AGENTS ON BEHALF OF THE GOVERNMENT.
THE BILL ALSO PROVIDES FOR PENALTIES FOR EVASION OF TAX BY EITHER PASSENGERS OR OPERATORS.
THERE IS PROVISION IN THE BILL TO EXEMPT CERTAIN CATEGORIES OF PASSENGERS FROM PAYMENT OF THE TAX. THEY INCLUDE TRANSIT PASSENGERS, PASSENGERS ON AIRCRAFT UNAVOIDABLY DIRECTED TO HONG KONG AND PASSENGERS WITH DIPLOMATIC OR CONSULAR STATUS.
THE BILL WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL FOR ITS FIRST AND SECOND READINGS NEXT WEDNESDAY (MAY 11). IT IS INTENDED THAT THE LEGISLATION SHOULD BE ENACTED ON MAY 25.
17