Sources from Hong Kong Financial Services and the Treasury Bureau said Friday that the arrangements intend to impose a tax on persons departing from Hong Kong by land and sea to help finance the improvement of boundary facilities from the beginning of next year.

It is proposed that persons and private cars intending to depart from Hong Kong each pay 18 HK dollars (US$2.3) and 100 HK dollars (US$12.8) respectively.

Under the proposed off-site collection arrangements, the assistance of some 149 transport operators would be required for collecting tax on the government's behalf. They include 126 operators of land transport (trains, shuttle buses, coaches, private buses and light buses and hire cars) and 23 operators of sea transport (ferries to the Chinese mainland, Macao cruise ships).

At present, passengers departing from Hong Kong by air and at marine ferry terminals are already required to pay either a tax or a fixed fee to the government.

Those who will be exempted from the tax include students who reside in either Hong Kong, Macao or Guangdong Province and need to enter and depart Hong Kong frequently in pursuance of their full-time education or any technical training courses; children under 12 years old; drivers, crew members and other persons operating land transport vehicles, ferries or cruise ships; transiting passengers for ships and passengers arriving in Hong Kong by reason of adverse weather or emergency as well as other persons such as visiting diplomats, members of specialized international organizations.

(Xinhua News Agency February 14, 2003)