Revenue boost: The increased air-passenger departure tax, which will take effect on January 9 next year, will help ease the Government's budget deficit.

The air passenger departure tax will rise from $80 to $120 from January 9 next year.

This will generate additional Government revenue of $400 million a year and help relieve the fiscal deficit, the Secretary for Financial Services & the Treasury says.

The Legislative Council today endorsed the increase, which was proposed in the 2003-04 Budget. Owing to the SARS outbreak, its implementation was postponed.

Frederick Ma noted that the tax increase will ease the budget deficit by providing an additional and stable source of recurrent revenue, without affecting people's livelihood.

He also pointed out that the increased tax is still a relatively small amount compared with the average price of an air ticket, and thus will not hinder tourism development.