The tax, which was expected to be in place early next year, would levy an HK$18 charge on individuals leaving Hong Kong, and a HK$100 charge for cars making the journey. The anticipated HK$1 billion in revenue raised from the border tax would be directed towards improving border facilities.

However, the DAB says that the tax will be damaging to the tourist industry, and argues that the costs far outweigh any benefits that such a levy would bring. "The HK$18 tax will be stumbling block to efforts to boost tourism because it will dampen the mood of visitors," DAB chairman Jasper Tsang explained. "The tax will bring in only HK$1 billion a year. Is it worthwhile?" Tsang added that the DAB would vote against the measure in the Legislative Council if the government went ahead with the move.

Meanwhile, Hong Kong's Financial Secretary Henry Tang has stated that he will only scrap the border tax proposal if it is the public interest to do so. "Government prestige is not my concern. I will only consider its overall impact on the economy and public views on the tax," he announced.