Government to move resolution to resume collection of Hotel Accommodation Tax

2024-07-03 15:00 Last Updated At：16:00

Government to resume collection of hotel accommodation tax at 3% rate in 2025, estimated $1.1 billion revenue expected without impacting visitors' spending in hong kong

The Government served a notice to the Legislative Council today (July 3) to move a resolution under the Hotel Accommodation Tax Ordinance (Cap. 348) (HATO) to resume the collection of hotel accommodation tax (HAT).

Under the HATO, the HAT is imposed on hotel and guesthouse accommodation, and is levied on the accommodation charges payable by guests to hotel or guesthouse proprietors at a rate specified in the Schedule to the HATO. Since July 1, 2008, the HAT tax rate has been reduced from 3 per cent to 0 per cent.

In the 2024-25 Budget, the Financial Secretary proposed to resume the collection of the HAT at a rate of 3 per cent with effect from January 1, 2025, as part of the comprehensive fiscal consolidation programme to restore fiscal balance in a few years' time. The HAT will bring an estimated annual revenue of about $1.1 billion to the Government, providing a stable source of revenue without affecting members of the general public. The HAT to be collected only accounts for less than 1 per cent of the spending by overnight visitors in Hong Kong and will notaffect visitors' choice of Hong Kong as a travel destination or their spending sentiment in Hong Kong.

The Secretary for Financial Services and the Treasury will move the relevant resolution pursuant to section 3(2) of the HATO at the Legislative Council on October 23. The resolution will be published in the Gazette on October 25.

Since the announcement of the proposal to resume the collection of the HAT in the 2024-25 Budget, the Financial Services and the Treasury Bureau and the Inland Revenue Department (IRD) have been actively reaching out to the hotel and guesthouse industry to facilitate them in understanding the operational arrangements regarding the collection of the HAT and in preparing for compliance. The IRD has also been providing assistance by organising briefings for industry practitioners, disseminating relevant information via letters and its website, as well as setting up a dedicated enquiry hotline and a dedicated helpdesk at the Inland Revenue Centre.

Commissioner of Customs and Excise reviews Hong Kong Customs passing-out parade

2024-07-05 22:01 Last Updated At：22:18

Hong kong customs commissioner inspects passing-out parade for new customs officers, demonstrates commitment to world customs organization vice-chairperson role

The Commissioner of Customs and Excise, Ms Louise Ho, attended the Passing-out Parade for the 492nd-495th Customs Officer Induction Courses at the Hong Kong Customs College today (July 5) to inspect 82 Probationary Customs Officers on parade. Among the passing-out officers, eight are members of Customs YES.

The Guards of Honour and all passing-out officers adopted the Chinese-style foot drill to form the logo of the World Customs Organization (WCO), demonstrating Hong Kong Customs' commitment to becoming the new Vice-Chairperson for the Asia/Pacific (A/P) region of the WCO starting from July this year. The Foot Drill and Flag Party of the Customs Youth Leader Corps, the first team under the Security Bureau to perform Chinese-style rifle foot drill, also made its debut in the Passing-out Parade, joining hands with the Guards of Honour and passing-out officers to form the pattern of the Tiananmen Tower to celebrate the 75th anniversary of the founding of the People's Republic of China. This arrangement demonstrated that the patriotic spirit of Hong Kong Customs can continue to be passed on from generation to generation.

Speaking at the passing-out parade, Ms Ho said under the protection of the Hong Kong National Security Law and the Safeguarding National Security Ordinance, Hong Kong Customs will steadfastly safeguard national security and strive to promote the country and Hong Kong towards high-quality development, actively expand international exchanges and co-operation, and make full use of Hong Kong's distinctive advantages under "one country, two systems", enjoying the strong support of the motherland and being closely connected to the world.

She added that Hong Kong Customs, in the name of Hong Kong, China, was elected as the Vice-Chairperson for the A/P region of the WCO at the Customs Co-operation Council Sessions of the WCO in Brussels on June 29, and formally assumed this role as regional representative for two years from July. The primary responsibilities of this role include driving regional development agendas, co-ordinating regional affairs, leading members in addressing various challenges and facilitating the formulation and implementation of regional strategic plans. By playing this pivotal role, Hong Kong Customs hopes to safeguard multilateralism and promote international co-operation, enhance the effectiveness in regional law enforcement, and strengthen the capability of Hong Kong Customs by proposing the agenda and collaboration means to contribute to the country and Hong Kong.

Talking about recruitment, Ms Ho pointed out that the response to this year's recruitment of Customs Inspectors has been encouraging, with more than 8 400 applications received, up 12 per cent from last year's 7 500. For Customs Officers, more than 5 300 applications were received in the first half of this year, representing an increase of 20 per cent over the 4 400 applications received in the same period last year. As Hong Kong Customs plays a more prominent role in the international arena after assuming the post of Vice-Chairperson for the A/P region of the WCO, it is believed that more young people who wish to broaden their horizons will be attracted to join Hong Kong Customs to realise their full potential.

Ms Ho encouraged the passing-out officers to carry forward the goal of creating "a new chapter of Asia-Pacific customs collaboration", to strive to provide diverse and quality customs services, and to make full use of Hong Kong Customs' unique advantages in regional co-operation to make significant new contributions to the country and to Hong Kong.