The Hong Kong government has announced a series of proposed adjustments to four traffic-related fees, set to impact drivers starting later in 2025. These changes, outlined by the Transport and Logistics Bureau, include increases to tunnel tolls, electric private vehicle license fees, parking meter charges, and fixed penalties for traffic violations. The adjustments aim to reflect the principles of cost recovery and user-pays, while enhancing traffic management and maintaining fiscal discipline, as foreshadowed in the 2025/26 Budget.
Starting September 21, 2025, the Shing Mun Tunnel and Aberdeen Tunnel will see their tolls rise from HK$5 to HK$8 for all vehicles, marking the first adjustment in 34 years. The Transport and Logistics Bureau noted that inflation over this period has exceeded 130%, leading to operational deficits for these tunnels. The increase is expected to achieve a break-even point with minimal impact on traffic flow. Similarly, the Central Kowloon Route, set to fully open in 2026, will charge a flat HK$8 toll. Authorities explained that this fee will help divert approximately 20% of traffic from congested Kowloon roads, retain 15% spare capacity for future growth, and recover nearly 80% of basic operating costs.
Parking meter charges for private cars will double from HK$2 to HK$4 per 15-minute interval, equivalent to a maximum of HK$16 per hour, effective September 28, 2025. This adjustment, which does not apply to parking spaces for goods vehicles, buses, or tour coaches, is intended to increase turnover of parking spaces to meet short-term parking demands. The government emphasized that the current parking meter rates have remained unchanged for over three decades, necessitating the update to align with economic realities.
The fixed penalty for illegal parking, commonly known as a “parking ticket” or “beef jerky” in local slang, will increase from HK$320 to HK$400, a 25% rise. Additionally, penalties for 19 other traffic violations, such as speeding or failing to comply with traffic signs, will rise by 50%, ranging from HK$480 to HK$1,500. These penalties, unchanged since 1994, are being adjusted to enhance deterrence and promote road safety and traffic flow. The Transport and Logistics Bureau plans to move a resolution at the Legislative Council on July 30, 2025, with the new penalties expected to take effect on January 1, 2026, following a six-month transition period. The government also committed to increasing the supply of parking spaces to address ongoing shortages.
Electric private vehicle license fees will undergo a restructuring based on a five-tier system tied to rated power output, with the transition occurring over six years in five phases starting November 1, 2025. In the first phase, newly registered electric vehicles with the lowest power (75 kW or less) will incur an annual fee of HK$1,500, while those with the highest power (225 kW or above) will pay HK$5,000. By March 2030, these fees will increase to HK$3,000 and HK$11,000, respectively. Despite the adjustments, electric vehicle license fees will remain 25% to 40% lower than those for fuel-powered vehicles, ensuring their continued attractiveness. Existing electric vehicle owners will benefit from a four-month grace period to adapt to the new fee structure.
The Transport and Logistics Bureau justified these changes by highlighting the need to align fees with inflation and operational costs, which have risen significantly over the past three decades. The adjustments are part of a broader strategy to improve traffic management and ensure sustainable public finances, as outlined in the 2025/26 Budget. While the government anticipates minimal disruption to traffic patterns, the fee hikes have sparked concerns among drivers, with some citing insufficient parking spaces as a contributing factor to violations.