LCQ4: Monitoring mechanism for airline fuel surcharges

Source: Hong Kong Government special administrative region – 4

Following is a question by the Hon Vivian Kong and a written reply by the Secretary for Transport and Logistics, Ms Mable Chan, in the Legislative Council today (April 22):

Question:

Recent ongoing tensions in the Middle East have led to a continuous rise in aviation fuel prices, prompting many airlines in Hong Kong to successively increase their passenger fuel surcharges. However, there are views that the increases in passenger fuel surcharges vary among airlines, with some differences being very significant (for example, some airlines have increased their surcharges by approximately 30 per cent, while some have increased them by more than one-fold). This situation has caused confusion among the public, and made it difficult for travel agents to provide consumers with a reasonable explanation, which may in turn adversely affect the industry’s reputation and impair the status of Hong Kong as an international aviation hub. In this connection, will the Government inform this Council:

(1) given that the Government liberalised passenger fuel surcharge in 2018, allowing airlines to determine the surcharges they levy at their own discretion, whether the Government will consider re-regulating passenger fuel surcharge, for example by setting a cap on the rate of increase, to ensure that increases are reasonable and transparent;

(2) whether the Government will consider establishing a mechanism to ensure that, when international oil prices fall, Hong Kong airlines can reduce their passenger fuel surcharges accordingly within a specified time frame; if so, of the details; if not, the reasons for that; and

(3) as it has been reported that many airlines have recently announced adjustments to their passenger fuel surcharges at very short notice, with an airline announcing its surcharge adjustments to take effect in two days’ time and subsequently raising them again within a week, and there are views that this leaves consumers and the tourism industry insufficient time to prepare, causing considerable inconvenience, whether the Government, in this connection, will consider requiring airlines to provide a reasonable notice period when adjusting their passenger fuel surcharges; if so, of the details; if not, the reasons for that?

Reply:

President,

With ongoing tensions in the Middle East, airlines worldwide are being impacted by elevated aviation fuel prices. This is placing significant pressure on the costs and cash flow of local airlines, which have to respond to these challenges by increasing fuel surcharges or adjusting flight schedules. At the same time, as an international aviation hub, maintaining the competitiveness of Hong Kong International Airport (HKIA) is of paramount importance, and local airlines have to continue to provide stable and reliable services to passengers. The Government is committed to working closely with local airlines to jointly address the current difficulties and ensure the quality of air services, with a view to minimising the impact on passengers and the competitiveness of HKIA.

My reply to the question raised by the Hon Kong is as follows:

(1) and (2) The Government has been adopting a policy of liberalising air tariffs in a progressive manner. Fuel surcharges allow airlines to partially recover the increase in operating costs due to the fluctuation of fuel prices. There is a global trend of deregulating fuel surcharges. The liberalisation of fuel surcharges aims to allow market forces to regulate the level of fuel surcharges on their own, in the same way that the market determines other components of the prices of air services. Airlines will have greater incentives to improve the overall efficiency and quality of their services as a result of market competition, and market forces will cause prices of air services, including fuel surcharges, to be set at competitive levels.

The Government has liberalised passenger fuel surcharge (PFS) with effect from November 2018, and cargo fuel surcharge with effect from January 1, 2025. After the liberalisation of fuel surcharges, airlines may decide at their discretion whether to impose fuel surcharges and at what level for flights originating from Hong Kong. With regard to PFS, airlines must display the final price of air tickets and provide a breakdown of the final price to show all “must pay” elements of the ticket fare in each quotation/transaction, including PFS (if applicable), at their direct sales outlets.

Major aviation fuel price index in the Asia-Pacific region increased by more than double in the past few weeks. Aviation fuel can account for more than 30 per cent of an airline’s operating costs. It is important for airlines to appropriately raise ticket fares or increase fuel surcharges to continue providing reliable air services, which is crucial for maintaining Hong Kong’s status as an international aviation hub. Even in jurisdictions where fuel surcharges remain regulated, fuel surcharges have similarly been adjusted upwards in response to elevated aviation fuel prices.

(3) The Transport and Logistics Bureau has maintained close communication with local airlines to understand the industry’s situation, as well as to emphasise the importance of maintaining the competitiveness of HKIA and remind local airlines of their critical role and social responsibilities in this regard. The Government will continue to closely monitor the service provision of local airlines and urge them to provide a reasonable notice period whenever possible when adjusting fuel surcharges, so as to minimise inconvenience to passengers and the tourism industry. We will also maintain close communication with the tourism industry and further enhance information transparency through the Travel Industry Council of Hong Kong’s online platform (List of Passenger Fuel Surcharges), enabling the public to better understand the details of fuel surcharge adjustments while fostering market competition.

LCQ14: Attracting Mainland universities to operate in Hong Kong

Source: Hong Kong Government special administrative region – 4

     Following is a question by Professor the Hon Alex Fan and a written reply by the Secretary for Education, Dr Choi Yuk-lin, in the Legislative Council today (April 22):
 
Question:
 
The Chief Executive’s 2025 Policy Address proposes to study the development model for the Northern Metropolis University Town (University Town) and explore the strategic direction for attracting leading universities in the Mainland and overseas to establish a base in Hong Kong, with a view to further promoting Hong Kong as an international education hub. In this connection, will the Government inform this Council:
 
(1) whether it will study the attraction of top Mainland universities to establish branch campuses in Hong Kong, and formulate a concrete action blueprint in this regard, including a mechanism for selecting and attracting target institutions, site selection arrangements and a phased implementation plan; if so, of the details and timetable; if not, the reasons for that;
 
(2) as there are views that attracting top Mainland universities involves institutional co-ordination issues, such as mutual recognition of academic qualifications, programme articulation, student recruitment arrangements and deployment arrangements for teaching staff, whether the Government will consider establishing a joint working group with the relevant Mainland departments to conduct preliminary studies on issues relating to the mode of operation, degree-awarding mechanisms, arrangements for mutual recognition of credits, cross-boundary flows of scientific research funding, etc, for Mainland universities establishing branch campuses in Hong Kong, and explore the establishment of a bilateral education co-operation framework by drawing on the experience of Hong Kong higher education institutions operating in the Mainland; and
 
(3) given that the Government has set aside some 100 hectares of land for the University Town and established the Working Group on Planning and Construction of the University Town, whether the authorities will consider adopting a “one university, two campuses” model or other innovative modes of operation when planning the University Town, and reserve space for top Mainland universities to establish branch campuses in Hong Kong; whether the authorities will study the establishment of a dedicated fund or the introduction of tax concession measures, so as to support the long-term development of Mainland higher education institutions operating in Hong Kong?
 
Reply:
 
President,
 
For two consecutive years, the Chief Executive has put forward in the Policy Address the goal of developing Hong Kong into an international education hub and a cradle for future talents, and proposed leveraging the development opportunities in the Northern Metropolis and its close connections with the Mainland to provide the post-secondary education sector with valuable opportunities to expand its capacity and enhance its quality. Our consolidated reply to the various parts of the question raised by Professor the Hon Alex Fan is as follows:
 
Last year, the Government set up the Working Group on Planning and Construction of the University Town (WG), led by the Chief Secretary for Administration, to study the development mode for the Northern Metropolis University Town (NMUT). The WG will conduct field trips on the successful models of university towns elsewhere and seek views. It will also explore the possible way forward to deeply integrate industry development with the academic sectors where Hong Kong has an edge, alongside the strategies for attracting leading universities and research institutes in the Mainland and overseas to establish a base in Hong Kong.
 
The NMUT is an important strategic initiative for developing Hong Kong into an international post-secondary education hub. Local post-secondary institutions are actively leveraging their unique characteristics, advanced disciplines, extensive experience and global networks to introduce more inter-institutional, interdisciplinary, cross-sectoral and cross-boundary branded programmes, research collaborations and exchange projects with renowned Mainland and overseas institutions in a flexible and innovative manner. This will attract world-class scholars and outstanding students to Hong Kong and enable the NMUT to leverage its role as a super-connector performing the functions of “bringing in” and “going global” in the field of post-secondary education.
 
The WG will continue to make recommendations on the development mode and specific facilities of the NMUT, which will break away from traditional models. It will actively explore strategies to attract leading universities or research institutes to establish a base in Hong Kong, and consider measures conducive to the development of the NMUT, so as to facilitate Hong Kong’s development into an international post-secondary education hub.
 
Meanwhile, the Government will continue to support the development of Hong Kong’s post-secondary institutions in the Mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area, including supporting them in forging cross-disciplinary partnerships with these cities to leverage the distinctive characteristics and competitive edges of Hong Kong’s higher education sector, as well as creating favourable conditions for scientific research and development, knowledge transfer and commercialisation. These efforts aim to promote the conduct of research activities of a high academic standard and nurture high-calibre talents needed for the country’s development by synergising the complementary academic structures and facilities of the Hong Kong and Mainland campuses.
 
The Government will roll out three post-secondary education sites in the Hung Shui Kiu/Ha Tsuen New Development Area shortly for application by the University Grants Committee-funded universities and universities of applied sciences for campus development, and $10 billion will be earmarked for providing loans to support campus development. The details of the land allocation and loan arrangements will be announced in due course.

LCQ5: Environmental impact assessments

Source: Hong Kong Government special administrative region

     Following is a question by the Hon Aaron Bok and a written reply by the Secretary for Environment and Ecology, Mr Tse Chin-wan, in the Legislative Council today (April 22):

Question: 
(1) whether it has compiled statistics on the number of engineering projects in the past three years where compliance costs (including mitigation measures, compensation proposals, or monitoring and auditing expenses) have increased significantly due to the requirements of individual assessment criteria in the Memorandum; if so, of the extent of cost increase; 
     In addition, under the amended Technical Memorandum, project proponents may, after the detailed design at a later stage of a project is available (e.g. before tendering or before commencement of works), use the online construction noise management platform under the EPD’s HKED to conduct a detailed quantitative construction noise assessment and submit the relevant mitigation plan, so as to complete the construction noise assessment efficiently.
 
     Meanwhile, the EPD has introduced various advanced technologies to further enhance its capabilities in environmental monitoring and assessment, including the use of AI to assist in monitoring migratory routes and roosting conditions of wintering birds, and the use of 3D optical radar scanning technology for tree surveys. These applications not only improve efficiency, but also enhance the scientific quality and reliability of the EIA.
 
     The EPD will continue to uphold a professional, open and collaborative approach, and actively encourage project proponents to put forward innovative, cost-effective and practicable environmental mitigation proposals, so as to ensure that all environmental factors have been duly considered during project delivery, while reducing overall project costs and expediting delivery.

LCQ8: Regulating animal hospice services

Source: Hong Kong Government special administrative region – 4

Following is a question by Dr the Hon Chan Han-pan and a written reply by the Secretary for Environment and Ecology, Mr Tse Chin-wan, in the Legislative Council today (April 22):
 
Question:
 
It is learnt that in recent years the steady increase in the number of pet keepers in Hong Kong has led to a growing demand for animal hospice services. It is reported that some animal hospice service providers (service providers) have conducted pet cremation services in industrial buildings, causing problems such as breaches of lease conditions, air pollution and sanitary nuisance. In this connection, will the Government inform this Council:
 
(1) of the numbers of complaints about pet cremation services received by each department and the follow-up outcome respectively in each of the past three years, with a breakdown by complaint category; among them, the respective numbers of cases involving contraventions of (i) lease conditions, (ii) the Air Pollution Control Ordinance (Cap. 311) and (iii) the Fire Services Ordinance (Cap. 95) that ultimately resulted in successful prosecutions;
 
(2) as the Government indicated in its reply to a question from a Member of this Council on October 22, 2025 that it had no plans to introduce specific legislation to regulate animal hospice services, and yet given the absence of a licensing regime regulating service providers or introduced in respect of animal hospice services under the existing legislation, whether the Government will reconsider enacting legislation to regulate such services or introduce a unified licensing regime for the operation of animal hospice services to safeguard public interest;
 
(3) as there are views that, under the Air Pollution Control (Furnaces, Ovens and Chimneys) (Installation and Alteration) Regulations (Cap. 311A), only incineration facilities consuming more than 25 litres of fuel per hour require applications to the Environmental Protection Department prior to installation, resulting in some service providers deliberately using small cremators with low fuel consumption and poorer combustion efficiency to circumvent prior vetting, whether the Government will expedite the review and amendment of the relevant legislation to abolish the single fuel consumption threshold, or require all commercial pet cremators to be equipped with secondary combustion and flue gas filtration devices; and
 
(4) to address operational issues of pet cremation facilities, whether the Government will designate specific lands in urban planning or add a dedicated “pet cremation” category to the land use categories, in order to zone suitable areas for the provision of legal and compliant pet cremation services?
 
Reply:   
 
President,

Having consulted the Development Bureau and the Security Bureau, the reply to the question from Dr the Hon Chan Han-pan is as follows:

(1) In the past three years, the number of complaints received by the Food and Environmental Hygiene Department (FEHD), the Environmental Protection Department (EPD), the Fire Services Department (FSD) and the Lands Department (LandsD) on pet cremation services and the follow-up outcome, are set out at Annex, categorised by the type of complaint and the number of successful prosecutions.

(2) Currently, various government departments regulate pet cremation operating premises in accordance with legislations or the terms of the land leases. For example, upon receipt of complaints about these premises causing sanitary nuisance, environmental pollution, fire hazard or breach of terms of the land lease, the FEHD, the EPD, the FSD, or the LandsD will carry out inspections and take enforcement actions as necessary. The Government has no plans to separately introduce specific legislation or licence system.

(3) The Air Pollution Control Ordinance (Cap. 311) (the Ordinance) already controls air pollutant emitted during the operation of incinerators, furnaces and ovens. The Ordinance stipulates that the operation of incinerators with installed capacity exceeding 0.5 tonne per hour is a “specified process”. The owner of the incinerators must apply for a “specified process” licence from the EPD in advance.
 
According to the regulation under the Air Pollution Control (Furnaces, Ovens and Chimneys) (Installation and Alteration) Regulations (Cap. 311A), for furnaces or ovens that have installed capacities below “specified process” but consume more than
 
(i) 25 litres of conventional liquid fuel per hour; or
(ii) 35 kilograms of conventional solid fuel per hour; or
(iii) 1 150 megajoules of any gaseous fuel per hour, 

their owner must submit plans and specifications of the relevant furnaces, ovens, chimneys or flues to the EPD not less than 28 days prior to their installation, and must obtain approval from the EPD on the plans and specifications before installing and operating the relevant equipment.
 
Equipment that does not meet the above consumption levels is very small and generally does not cause air pollution. Abolishing or further tightening the threshold would subject a large number of small stoves, even residential stoves, to the pre-application requirements, causing inconvenience to many citizens and is unnecessary. If air pollution issues arise due to improper operation or other reasons, the Ordinance has already granted the power to the EPD to issue air pollution abatement notice to the owner of the equipment, and require them to rectify the pollution problem.

(4) In terms of town planning, “pet cremation facilities” is currently not under any existing categories of use in statutory town plans. Interested operators may submit an application to the Town Planning Board (TPB) in accordance with section 12A of the Town Planning Ordinance to rezone a certain statutory planning use to a designated use for “pet cremation facilities”, or submit an application for planning approval in accordance with section 16 under appropriate circumstances if said “pet cremation facilities” are temporary use only. The TPB would consider and decide on each case individually having taken into factors such as land use compatibility, impacts on the surrounding environment, views from relevant bureaux and departments, etc. Since setting up these facilities may have potential impacts on the surrounding environment while each existing building differs in conditions, we consider the current application-based arrangement more prudent.

LCQ18: Promoting the development of the family office industry in Hong Kong

Source: Hong Kong Government special administrative region

LCQ18: Promoting the development of the family office industry in Hong Kong 
Question:
 
     According to the Applied Research report “Beyond Wealth: Advancing Hong Kong’s Family Office Ecosystem Through Philanthropy, Impact Investing, and Risk Management” (the report) released by the Hong Kong Institute for Monetary and Financial Research under the Hong Kong Academy of Finance in March this year, the family office (FO) sector in Hong Kong exhibits strong growth momentum, and over 3 380 single FOs were already operational in the city as of the end of 2025, representing an increase of about 680 FOs (or a growth rate of more than 25 per cent) over the past two years. Hong Kong’s appeal as a premier FO destination is increasingly evident. In this connection, will the Government inform this Council:
 
(1) of the FOs that have been established in Hong Kong with the assistance or facilitation of Invest Hong Kong’s FO team (dedicated FamilyOfficeHK team) each year since 2021, the breakdown and proportion by area of investment in the local market;
 
(2) in light of the recent changes in the Middle East situation, whether the Government has compiled statistics on the amount of capital inflows into Hong Kong from the Middle East region over the past three months, and whether it has assessed the impact of the recent trend in capital flows on the development of the FO industry in Hong Kong; and
 
(3) as the report mentions FOs’ increasing demand for philanthropy, impact investing and risk management strategies, what measures the Government has put in place to promote development in such areas?
 
Reply:
 
President,
 
     Hong Kong is a leading global asset and wealth management hub, with sustained and robust development in its family office (FO) ecosystem. According to the findings of the study by the consultant (consultant’s study) commissioned by Invest Hong Kong (InvestHK) published in February 2026, there were over 3 380 single FOs operating in Hong Kong as of end-2025. This represents an increase of about 680 offices, or more than 25 per cent, over the past two years. In consultation with InvestHK and the Hong Kong Academy for Wealth Legacy (HKAWL), the reply to various parts of the question is as follows:
 
(1) The dedicated FamilyOfficeHK team (the dedicated team) of InvestHK provides one-stop support services to FOs and ultra-high-net-worth individuals interested in pursuing development in Hong Kong. Since its establishment in June 2021 up to end-March 2026, the dedicated team has assisted 252 FOs to set up or expand their business in Hong Kong. Separately, around 160 FOs have indicated that they are preparing or have decided to set up or expand their business in Hong Kong. As the investment categories and allocation of FOs are commercially sensitive information, and need not be disclosed to the Government, the Government does not have the relevant information.
 
     For reference, according to the aforementioned consultant’s study, the single FOs surveyed primarily invest in traditional asset classes, including public equities (in which 93 per cent of the respondents have investment allocation, the same for below), fixed income products (88 per cent) and cash and cash equivalents (96 per cent), as well as alternative asset classes, which include private equity (85 per cent), real estate (74 per cent), hedge funds (61 per cent), commodities and precious metals (58 per cent), digital assets (including cryptocurrencies) (53 per cent), private debt and direct lending (46 per cent), and arts and collectibles (42 per cent).
 
(2) Hong Kong, as a safe and stable hub with international connectivity, is a preferred asset and wealth management centre in Asia for global investors and attracts many high-net-worth individuals to consider allocating their assets here. Geopolitical events have highlighted the importance of security, stability and certainty that Hong Kong offers as an international financial centre, and it fully demonstrates Hong Kong’s role as a “safe harbour”. To this end, InvestHK has observed in recent months an increase in interest from FOs around the world in establishing operations in Hong Kong and a rise in related enquiries and site visits, reflecting Hong Kong’s attractiveness as a global financial centre.
 
(3) The Government actively promotes the development of FO business and strengthens the competitive advantages of the asset and wealth management industry and related professional service sectors in Hong Kong.
 
     To attract more funds and FOs to set up and operate in Hong Kong, we will further enhance the preferential tax regimes for funds, single FOs and carried interest to cover more types of qualifying investments eligible for tax concessions, which will include emission derivatives/emission allowance, carbon credits and insurance-linked securities and therefore help broadening the investment options for funds and FOs. Our target is to introduce the legislative proposal into the Legislative Council in the first half of 2026. If approved, the relevant measures will take effect from the year of assessment 2025/26.
 
     Established under the Financial Services Development Council in November 2023, the HKAWL provides a platform for collaboration, networking, knowledge sharing and talent development around its six “Legacy Development Goals” (namely intergenerational integration, family governance, philanthropy, impact investing, arts and culture, and wealth management) for asset owners, wealth inheritors and the FO sector. It is also committed to promoting impactful philanthropic activities, with a view to consolidating Hong Kong’s roles as the preferred destination for intergenerational wealth management and a global philanthropic hub. The HKAWL launched its flagship philanthropic initiative, Impact Link, in March 2024 and has since organised 17 workshops and seminars for over 700 family participants to encourage them to explore and develop philanthropic initiatives. In June 2025, the HKAWL further introduced the Impact Link Online Portal, a dedicated depository platform for invited family philanthropists to discover scalable impact investing initiatives in Hong Kong and beyond. As of end-March 2026, the portal has been joined by 55 family philanthropists and altogether nominated 12 non-governmental organisations and charitable projects.
 
     Besides, as a leading green and sustainable finance centre in the world, Hong Kong has been actively leveraging its strengths as an international financial centre to provide diversified investment and financing channels, facilitate matching between international capital (including capital of FOs) and quality green projects, and promote green transformation of the economy in the region. In 2025, the volume of green and sustainable bonds arranged in Hong Kong amounted to around US$38 billion, accounting for 40 per cent of the regional total and ranking first in the Asian market for eight consecutive years since 2018. As of end-2025, there were about 200 Environmental, Social and Governance (ESG) funds authorised by the Securities and Futures Commission in total, with assets under management over HK$1.1 trillion. The number of ESG funds and assets under management recorded an increase of 11 per cent and 3 per cent respectively from three years ago.
 
     FOs play a vital role in preserving family wealth and building a lasting legacy for future generations. As a global risk management centre with mature financial markets and robust regulatory framework, Hong Kong’s insurance industry offers a wide range of products and services to fulfil FOs’ functions of identifying and managing risks associated with the families’ wealth according to the unique features and inheritance needs of individual families. In the past few years, the Insurance Authority (IA) has implemented various initiatives to help the industry launch more diversified products, including those related to indexed universal life policy which is popular amongst FOs. The IA has also established a bespoke regulatory regime and a grant scheme to facilitate issuances of insurance-linked securities which bear lower correlation to the fluctuating economic cycles and meet FOs’ risk management appetite.
Issued at HKT 15:03

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LCQ20: Expanding Hong Kong’s tax treaty network

Source: Hong Kong Government special administrative region – 4

     Following is a question by Dr the Hon Hoey Simon Lee and a written reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (April 22):
 
Question:
 
     The Government signed the 57th Comprehensive Avoidance of Double Taxation Agreement (CDTA) with Barbados in March 2026 to expand Hong Kong’s tax treaty network. There are views pointing out that in the context of an evolving global taxation environment, expanding the tax treaty network is crucial to consolidating Hong Kong’s position as a leading destination for international business operations. In this connection, will the Government inform this Council:
 
(1) given that Singapore has signed over 90 CDTAs, a number far exceeds Hong Kong’s current total of 57, whether the Government will formulate a more proactive timetable to catch up with the lag, so as to narrow the gap between Hong Kong and major economies of other regions in this regard;
 
(2) apart from increasing the number of CDTAs, whether the Government has assessed if the existing CDTAs (especially those which were signed at an earlier stage) still align with the prevailing international tax standard, and ensured that these CDTAs can continue to provide Hong Kong enterprises with competitive withholding tax rates and adequate legal protection;
 
(3) whether the Government will step up efforts in negotiating and concluding CDTAs with emerging markets along the Belt and Road, as well as with countries or regions with potential for collaborating with Hong Kong in innovation and technology, so as to facilitate bilateral trade flows and reduce tax costs for enterprises;
 
(4) of the resources and staffing establishment currently dedicated by the Government to expanding the tax treaty network; whether it will consider allocating additional resources in future to expedite the progress of negotiating and concluding CDTAs; and
 
(5) whether the Government has taken the initiative to publicise and promote to local chambers of commerce and investors in jurisdictions with which CDTAs have been signed, so as to assist multinational enterprises in fully understanding and making good use of CDTAs to optimise their global tax costs when considering the setting up of regional headquarters in Hong Kong, thereby attracting quality enterprises to Hong Kong and further developing the “headquarters economy”?
 
Reply:
 
President,
 
     The Government has been proactively expanding the Comprehensive Avoidance of Double Taxation Agreement (CDTA) network, which will enable investors to better assess their potential tax liabilities from cross-border economic activities and avoid double taxation. This will foster a more attractive business environment, promoting bilateral trade and investment.
 
     Having consulted the Commerce and Economic Development Bureau (CEDB), the Office for Attracting Strategic Enterprises (OASES) and the Inland Revenue Department (IRD), my reply to Dr the Hon Hoey Simon Lee’s question is as follows:
 
(1), (3) and (5) Since the establishment of the Hong Kong Special Administrative Region Government, Hong Kong has started entering into CDTAs with major trading partners. Following the conclusion of an avoidance of double taxation arrangement with the Chinese Mainland in 1998, we signed a CDTA with Belgium in 2003, which was our first CDTA with an overseas jurisdiction. As of mid-April 2026, Hong Kong has signed CDTAs with 57 tax jurisdictions, 12 of which were signed by the current-term Government. We have also commenced negotiations with 17 tax jurisdictions. Depending on the content and complexity of the CDTAs, as well as the willingness and work priority of negotiation partners, we expect that three to four CDTAs will be signed this year.
 
     According to the figures of 2025, 15 of Hong Kong’s top 20 major trading partners have signed CDTAs with us. The trade value between Hong Kong and these 15 partners amounted to over 75 per cent of Hong Kong’s total trade value. This shows that the current CDTA network suits Hong Kong’s trade needs. To attract more enterprises to Hong Kong and facilitate enterprises to “go global” through Hong Kong, the Government will continue to proactively expand our CDTA network with a focus on jurisdictions participating in the Belt and Road (B&R) Initiative.
 
     Apart from continuously expanding the CDTA network, the Government has been implementing various measures aiming to deepen the economic and trade co-operation with B&R countries and regions, and assist Hong Kong enterprises and professional services in exploring new business opportunities. the CEDB and the Belt and Road Office will continue to organise the annual flagship event – Belt and Road Summit; reach out to agencies in charge of projects in B&R countries and regions; organise missions, study tours and matching activities; as well as encourage and assist external organisations to stage roadshows in Hong Kong, with a view to promoting Hong Kong’s diversified, professional and international professional services. Also, Invest Hong Kong has all along been assisting enterprises from all over the world to set up or expand businesses in Hong Kong, including economies along the B&R and with potential for collaboration in the field of innovation and technology. The department will continue to organise and sponsor an array of investment promotion activities, including roadshows, seminars and roundtables, to provide overseas enterprises with the latest information on Hong Kong’s business environment, including leveraging the advantages of Hong Kong’s CDTA network, thereby attracting more inward investment.
 
     In addition, OASES is proactively engaging enterprises around the world with potential and that are technologically leading to establish a presence in Hong Kong. Apart from showcasing Hong Kong’s overall strengths in terms of institutions, finance, professional services, and international connectivity, OASES will highlight Hong Kong’s competitive tax policies and measures (including Hong Kong’s CDTA network) to help enterprises more comprehensively assess the feasibility of establishing headquarters, research and development centres, and treasury management centres in Hong Kong. Among others, to further enhance Hong Kong’s role as a key base for Corporate Treasury Centres (CTCs), the Government will provide additional tax incentives and flexibility to CTCs and their associated corporations, and at the same time strengthen promotion and communication with multinational enterprises, and enhance training for relevant practitioners, etc. The Government will announce an action plan in mid-2026, outlining the details of the aforementioned measures.
 
(2) The Government from time to time reviews and updates Hong Kong’s CDTAs to ensure that they conform to the prevailing international tax standards and provide Hong Kong enterprises with competitive arrangements and sufficient safeguards.
 
     In 2015, the Organisation for Economic Co-operation and Development (OECD) introduced the Base Erosion and Profit Shifting (BEPS) package with tax treaty-related measures, including prevention of treaty abuse and enhancement of the dispute resolution mechanism. The Government implemented the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (Convention) of the package through local legislation in 2022 in order to modify CDTAs signed earlier for conforming to BEPS requirements. The CDTAs signed in recent years have also incorporated provisions that meet the standards of the Convention.
 
     The prevailing withholding tax rates under Hong Kong’s CDTAs are generally on par with those under the CDTAs of our major trading partners in the region and some of ours are even more favourable. Besides, our CDTAs clearly set out the taxing rights of the governments of the two sides, residents and taxes covered, arrangements for elimination of double taxation, withholding tax rates, dispute resolution mechanism, information exchange arrangements between the tax authorities, etc, so as to provide enterprises with tax certainty and legal protection.
 
(4) The Financial Services and the Treasury Bureau and the IRD are responsible for duties in relation to expansion of the CDTA network. The major officers involve one Principal Assistant Secretary for Financial Services and the Treasury, one Assistant Commissioner of Inland Revenue (directorate officer at D2 level) and seven officers from the grades of administrative officer, assessor and executive officer. To cope with the increasing workload related to CDTAs and other international tax matters, the IRD created the aforementioned post of Assistant Commissioner in June 2023 to strengthen support at the directorate level. To meet operational needs, we will arrange internal deployment or increase manpower as appropriate.

LCQ1: Improving environmental hygiene conditions of rear lanes

Source: Hong Kong Government special administrative region

     Following is a question by the Hon Dennis Leung and a written reply by the Secretary for Environment and Ecology, Mr Tse Chin-wan, in the Legislative Council today (April 22):

Question: (3) given that the FEHD has set up 24 rear lane cleansing teams dedicated to the cleansing of rear lanes while the Working Group on Environmental Hygiene and Cityscape led by the Deputy Chief Secretary for Administration has also co-ordinated the environmental hygiene work among various policy bureaux and departments, of the frequency of the cleansing operations conducted by the Government in rear lanes which are not identified as hygiene black spots, as well as the criteria based on which the Government determines which rear lanes require more frequent cleansing work;

(4) whether the various government departments will consider establishing a permanent inter-departmental inspection mechanism to proactively deal with non-compliant acts (e.g. the illegal placing of miscellaneous articles and illegal parking of motorcycles) committed in hidden rear lanes; if so, of the details; if not, the reasons for that;

LCQ3: Traffic control and surveillance system

Source: Hong Kong Government special administrative region – 4

​Following is a question by the Hon Chan Cho-kwong and a written reply by the Secretary for Transport and Logistics, Ms Mable Chan, in the Legislative Council today (April 22):

Question:

While all government tunnels and major trunk roads are currently equipped with traffic control and surveillance systems (TCSSs) which operate round-the-clock, there are views that the problem of traffic congestion in these government tunnels and on such major trunk roads in Hong Kong persists, arousing public concerns about whether TCSSs can provide more comprehensive coverage of the road network in Hong Kong to identify traffic incidents or contraventions in a timely manner. In this connection, will the Government inform this Council:

(1) under the framework of the Transport Strategy Blueprint, whether the Government has specific plans to expand TCSSs and further step up automatic detection and law enforcement efforts against traffic contraventions through implementation of TCSSs; if so, of the following details of the technology concerned, including the scope of application, scale of input, and estimated implementation timetable; if not, the reasons for that, and whether it will consider establishing an independent review mechanism to ensure that law enforcement actions are carried out in a fair and transparent manner and to safeguard the rights of members of the public to lodge complaints;

(2) the Government conducted the trial of the Ting Kau Bridge Smart Motorway Pilot Scheme (the Pilot Scheme) at the road section of Ting Kau Bridge southbound (Tsing Yi bound) in December 2024, in which the Automatic Incident Detection System assisted in detecting and handling traffic incidents by application of AI technologies; whether the authorities will expand the Pilot Scheme to cover the other major trunk roads, tunnels or roads in the urban areas; if so, of the technical specifications concerned and the timetables involved; if not, the reasons for that; and

(3) given that the Transport Department is actively building an intelligent traffic management platform by making use of AI and big data to identify traffic bottlenecks at road junctions, make forecasts on weather conditions or unexpected incidents, so as to provide updates to the public in a timely manner; whether such platform will include smart monitoring functions (such as AI-powered image analysis of real-time road conditions, automatic alert functions in case of abnormalities)?

Reply:

President,

The Government has been committed to enhancing traffic management efficiency through innovative technologies, and has formulated long-term strategies in the Transport Strategy Blueprint promulgated in February 2026 to promote the application of digital technologies and AI in the transport sector.

My reply to the questions raised by the Member is as follows:

(1) and (3) At present, all road tunnels and the Tsing Ma Control Area are equipped with comprehensive Traffic Control and Surveillance facilities including CCTV cameras, automatic incident detectors, lane control signals, variable speed limit signs and variable message signs for efficient and effective traffic and incident management.

Under the framework of the Transport Strategy Blueprint, the Government proposes to commence a study on the Traffic Management Platform within this year, which will primarily be used to assist in transport planning and traffic management. The platform will integrate various traffic and transport data, including traffic data collected from major roads after smart motorway measures have been implemented, and will use big data analytics and AI technologies to predict changes in traffic conditions, identify traffic bottlenecks, develop emergency response plans, assist with traffic management and transport planning, and disseminate relevant information to the public. The platform will apply AI-based video analytics technology to enable real-time monitoring of road conditions and automatic alerts for abnormal traffic events. The system will be capable of analysing road congestion and recommending solutions in real-time, while sharing real-time information with relevant government departments. For example, the Highways Department can leverage this capability to swiftly clear blocked roads during extreme weather, thereby maintaining smooth traffic flow. In addition, the platform will share information with public transport operators and other stakeholders to facilitate their flexible deployment of vehicles and rapid response to traffic flows brought by major events or unexpected traffic conditions, thereby enabling smoother journeys for the public.

The Transport Department (TD) will implement a regional pilot in suitable districts, with areas around Aberdeen identified as the first site to be prepared within this year. The pilot aims to test the practical applications and functions of the Traffic Management Platform in Hong Kong’s road environment.

Regarding the use of technology to support traffic enforcement, the Government will review the development and application of relevant technologies in a timely manner. It will holistically assess the necessity of automated traffic enforcement, taking into account enforcement needs, evidentiary requirements, and public acceptance. The Traffic Management Platform is intended primarily for transport planning and traffic management, and automated enforcement matters are not included during its study phase.

(2) Building on the successful experience of the Smart Motorway Pilot Scheme at Ting Kau Bridge, the Government is progressively implementing and expanding smart motorway management measures across existing major roads and those under planning, with the aim of enhancing overall transport efficiency and enabling more flexible use of road space.

With regard to major roads in the planning stage, the TD has maintained close liaison with relevant works departments to incorporate suitable smart motorway elements and requirements into their designs, such as the Tsing Lung Bridge at the southern end of Route 11, scheduled to open by 2033, and the Northern Metropolis Highway (San Tin Section), scheduled to open by 2036. Specific measures include installing an automatic incident detection system and associated equipment on the relevant road sections to detect traffic incidents swiftly by harnessing AI technology, and to promptly disseminate real-time traffic information to motorists so that they can respond appropriately.

For existing major roads, the Government will take advantage of future opportunities such as road widening or the replacement of Traffic Control and Surveillance Systems (TCSSs) to incorporate smart motorway elements into suitable projects. These include a smart motorway design to be integrated into the planned expansion of San Tin Highway by the Civil Engineering and Development Department this year; the progressive replacement of TCSSs for the Cross-Harbour Tunnel and the Western Harbour Crossing starting in 2027 by the TD, with new systems equipped with active warning functions to enable early detection of emergencies inside the tunnels; and the incorporation of smart motorway design when TCSSs at the Tsing Sha Control Area and Tai Lam Tunnel are replaced at a later stage.

The TD will adopt suitable smart motorway systems, taking into account the actual geographical environment, traffic characteristics and operational needs of each major road or tunnel. The design and operation of these systems will comply with the Government’s rigorous requirements on information security and data processing.

15 building plans approved in February

Source: Hong Kong Government special administrative region – 4

     The Buildings Department approved 15 building plans in February, with three on Hong Kong Island, three in Kowloon and nine in the New Territories.

     Of the approved plans, nine were for apartment and apartment/commercial developments, two were for community services developments, and four were for factory and industrial development.

     In the same month, consent was given for works to start on nine building projects which, when completed, will provide 19 032 square metres of gross floor area for domestic use involving 226 units, and 56 346 sq m of gross floor area for non-domestic use. The department has received notification of commencement of superstructure works for one building project.

     The department also issued 10 occupation permits, with three on Hong Kong Island, two in Kowloon and five in the New Territories.

     Of the buildings certified for occupation, the gross floor area for domestic use was 81 216 sq m involving 1 068 units, and 90 080 sq m was for non-domestic use.

     The declared cost of new buildings completed in February totalled about $18.4 billion.

     In addition, four demolition consents were issued.

     The department received 2 115 reports about unauthorised building works (UBWs) in February and issued 544 removal orders on UBWs.

     The full version of the Monthly Digest for February can be viewed on the Buildings Department’s homepage (www.bd.gov.hk).

LCQ9: Traffic safety in road tunnels

Source: Hong Kong Government special administrative region – 4

Following is a question by the Hon Christine Fong and a written reply by the Secretary for Transport and Logistics, Ms Mable Chan, in the Legislative Council today (April 22):

Question:

A number of road tunnels in Hong Kong were completed and commissioned successively between the 1970s and 1980s, including the Cross Harbour Tunnel, the Aberdeen Tunnel, the Kai Tak Tunnel and the Eastern Harbour Crossing. Among them, the Cross Harbour Tunnel has remained in use for over 50 years. Given the heavy usage of road tunnels in Hong Kong, traffic safety in tunnels has aroused public concern. In this connection, will the Government inform this Council:

(1) of the fire service installations and equipment provided in existing road tunnels in Hong Kong (including their numbers and types) and the year when their fire alarm systems were last updated, with a tabulated breakdown by road tunnel;

(2) whether the authorities have any plan to further upgrade the ventilation systems and fire service systems of road tunnels in Hong Kong; if so, of the details; if not, the reasons for that;

(3) as it is learnt that wear and tear of the road surfaces in some road tunnels reappears shortly after repair, how frequently the authorities carry out repair works for various road tunnels, and whether they will step up the review of the road surfacing materials for repairing the road surfaces of tunnels to enhance the durability of their road surfaces; if so, of the details; if not, the reasons for that;

(4) whether the authorities have any specific plans to undertake road re-‍surfacing works for existing road tunnels, repair tunnel walls and hard shoulders, or replace other equipment/systems; if so, of the details; if not, the reasons for that; and

(5) as the Government indicated in its reply to a question raised by a Member of this Council on the Estimates of Expenditure for the 2018-2019 financial year that the Highways Department would conduct routine inspections of road tunnels once every six months, how frequently the authorities conduct routine inspections for various road tunnels at present?

Reply:

President,

The Government attaches great importance to the safety of road tunnels and ensures the normal operation of tunnel systems and facilities through regular inspections, thereby safeguarding the safety of road users. The co-ordinated reply to the question raised by Member is as follows:

(1) All government road tunnels are currently installed with fire service installations and equipment (FSIs) in accordance with the law and requirements of the Fire Services Department (FSD). The tunnel operators under the Transport Department (TD) conduct routine inspections and preventive maintenance on a regular basis, as well as corrective maintenance as necessary, while the Electrical and Mechanical Services Department exercises strict supervision on the inspections and maintenance works carried out by the tunnel operators. The tunnel operators also engage registered fire service installation contractors, in accordance with the law, to conduct annual inspections on the FSIs to ensure that they are maintained in good working order.

The TD and the tunnel operators have formulated comprehensive contingency plans for fire incidents and provide regular fire-fighting training to the tunnel operators’ staff. In the event of a fire in the tunnel, the tunnel operator will immediately take appropriate actions, including promptly reporting to government departments such as the FSD and the TD, activating the ventilation and fire services systems in the tunnel, implementing traffic management and tube closure measures, and assisting in the safe evacuation of motorists in the tunnel, etc. To enhance response efficiency, the TD and the tunnel operators, in collaboration with the FSD, jointly conduct fire drills in each tunnel every six months on average. These drills test the contingency procedures of various parties and the operation of FSIs, etc to ensure that all parties are familiar with the protocols and able to respond promptly to fire incidents. The TD and the tunnel operators will review the contingency plans from time to time and update them as necessary.

Regarding the detailed number of FSIs installed in various government tunnels and the year of the last fire services system upgrade, please refer to Annex 1. Due to variations in design, geographical environment and operational needs, the number of FSIs installed in each tunnel differs.

(2) The Government conducts reviews on the operational condition of ventilation and fire services systems at all government tunnels every year to ensure that they remain in proper and effective operation. According to the latest review of government tunnels, all ventilation and fire services systems are currently effective in meeting fire safety requirements.

The Government has also been undertaking the replacement of the ventilation and fire services systems at government tunnels whenever necessary. Over the past three years, the Government has replaced the fire services systems at Tseung Kwan O Tunnel, Cross-Harbour Tunnel and Shing Mun Tunnels, as well as the ventilation system at Kai Tak Tunnel. Currently, the Government is replacing the ventilation and fire services systems at Aberdeen Tunnel, Tseung Kwan O Tunnel, Shing Mun Tunnels, Tate’s Cairn Tunnel and Eastern Harbour Crossing. Details of the replacement projects are set out in Annex 2. When planning for the replacement and upgrading of the ventilation and fire services systems, the Government will take into account a number of factors, including their operational condition, serviceable life, supply of spare parts and repair feasibility, and will arrange replacement in an orderly manner. The Government will seek funding approval timely for the replacement projects to ensure the safe, reliable and efficient operation of government tunnels.

(3) The HyD regularly sends staff to inspect the pavement of all road tunnels under its jurisdiction. Depending on the traffic volume and speed limits of the tunnel’s connecting road sections, routine inspections are conducted daily or weekly, while detailed inspections are conducted every six months. Based on the inspection findings, the HyD arranges maintenance work in a timely manner to ensure that the road tunnels remain in good condition.

The HyD attaches great importance to the quality of pavement works and has been continuously researching and introducing more durable and environmentally friendly bituminous materials for paving roads, with a view to enhancing pavement quality and reducing maintenance frequency. Since April 1, 2025, the HyD has fully adopted the use of “Highly Modified Stone Mastic Asphalt (HMSMA)”, a highly modified bituminous material that has better anti-deformation, anti-aging and anti-fatigue performance than the conventional bituminous materials, for road paving at suitable locations. In particular, “10mm Highly Modified Stone Mastic Asphalt (HMSMA10)”, which is commonly used on general roads, has already been adopted on certain suitable sections of tunnel carriageways. In the future, the HyD will apply this material to suitable bituminous pavements having regard to the actual site conditions and needs, with a view to continuously improving the quality of pavements in road tunnels and reducing maintenance frequency, thereby creating a better driving environment for motorists.

In addition, the HyD is exploring the introduction of new materials for repairing existing aged concrete pavements (such as High Tensile Strength repair materials). These materials are expected to enhance pavement durability while shortening the duration of construction for repair works and subsequent maintenance, thereby minimising the impact on traffic caused by repair works.

(4) The HyD continuously conducts regular inspections of road tunnels and, based on the inspection findings, arranges necessary repair works, including pavement maintenance works. Over the past few years, the HyD has completed road resurfacing or bituminous overlay works at various sections of several road tunnels (including the Cross-Harbour Tunnel, Shing Mun Tunnels, and Tseung Kwan O Tunnel, etc) to improve pavement quality of road tunnels. The HyD has planned to continue carrying out road resurfacing works in 2026 on suitable sections of the Western Harbour Crossing, Eastern Harbour Crossing, Lion Rock Tunnel, and the Airport Tunnel connecting the Hong Kong-Zhuhai-Macao Bridge Hong Kong Port and the Hong Kong International Airport to optimise pavement quality and enhance driving comfort. Regarding other tunnel facilities (including tunnel walls and concrete profile barriers), the HyD will continue to arrange necessary repair works based on findings from regular inspections and the advice of professionals to maintain the road tunnels in good condition.

(5) To ensure the structural safety of tunnels, the HyD sends staff to conduct inspections every half year to identify obvious damage for further follow-up. Additionally, the HyD conducts General Inspections every two years. For older road tunnels (including the Cross-Harbour Tunnel, Aberdeen Tunnel, Kai Tak Tunnel and Lion Rock Tunnel), the frequency of General Inspections is increased to once every half year to once a year. General Inspections primarily involve close-up observations to thoroughly examine the condition of tunnel structures and their ancillary components. Furthermore, the HyD also regularly engages professionals to carry out Principal Inspections for tunnels, comprehensively evaluating the structural integrity of the tunnels and making recommendations for improvement. During the inspection process, professionals carry out various types of tests on tunnel structures including hammer tapping tests and core sampling of concrete components from different sections for examination and testing, to ensure the overall structural safety of the tunnels. Corresponding repairs will be arranged in a timely manner based on the inspection findings.