Public Transport Fare Subsidy Scheme

**Public Transport Fare Subsidy Scheme** is a subsidy program implemented by the government, which aims to provide daily travel for the use of local public transport services, while public transport expenses are higher Citizens reduce the burden of transportation costs.

The method of receiving the subsidy is simple and easy to understand. Citizens do not need to apply for or pre-register Octopus for the scheme. Under the plan, if a citizen's monthly public transport expenses exceed 200 yuan, the government will subsidize one-third of the actual public transport expenses exceeding 200 yuan. The amount of the subsidy will be calculated based on the actual public transport expenses recorded on each Octopus, subject to a monthly ceiling of $500.

## Implementation Background

On October 11, 2017, Chief Executive Carrie Lam Cheng Yuet-ngor announced the implementation of a public transport fare subsidy scheme in her Policy Address. The scope of coverage announced at the time included MTR, franchised buses, green minibuses, ferries and trams.

But the public light bus trade association, village bus operators, district councilors and Legislative Council members are dissatisfied that the plan does not include public light buses and village busesIn the end, Chief Executive Carrie Lam Cheng Yuet-ngor decided on December 12, 2017 to extend the scheme to public light buses, village buses, staff buses and kaito , the main premise is that the relevant operators must comply with specific operating requirements and install Octopus readers. It is estimated that the whole plan can benefit nearly 2.2 million citizens, and the subsidy expenditure is estimated to be 2.3 billion yuan per year.

On February 2, 2018, the Finance Committee of the Legislative Council approved the allocation of funds for the Public Transport Fare Subsidy Scheme.

On November 1, 2018, Chan Mei Po, Director of Transport, held a press conference and announced that the plan would start on January 1, 2019.

## Plan Changes

In 2019 October 16, the Chief Executive Template:Evchk published the "Policy Address", announcing the improvement of this plan. The subsidy amount for actual public transport expenses exceeding $400 per month has been increased from one-quarter to one-third, and the subsidy ceiling has also been increased from $300 to $400,  2020 January 1.

On April 8, 2020, due to the continued outbreak of the novel coronavirus, Chief Executive Carrie Lam Cheng Yuet-ngor announced on April 8, 2020 that the plan will be temporarily relaxed from July to December, and the monthly public transport expenditure threshold will be reduced from $400 to $200.

The Chief Executive issued the "Policy Address" on November 25 in 2020, announcing that due to the ongoing 2020 epidemic situation, the decision to extend the monthly public transport expenditure threshold will be extended by The arrangement of reducing $400 to $200 will continue until 2021 June 30.

On March 16, 2021, in response to the Chief Executive in Council's approval of fare increases by four franchised bus companies. In order to relieve the public's burden on transport expenses, the Government has implemented special measures earlier. During the period from July 1, 2020 to June 30, 2021, the monthly transport expenditure level of the "Public Transport Fare Subsidy Scheme" (Scheme) will be temporarily reduced. Relaxed from 400 yuan to 200 yuan. In order to take into account the pressure on citizens brought about by the adjustment of public transport fares, the government has decided to extend the above-mentioned special measures for another six months until December 31, 2021. During the period from April 1 to December 31, 2021, Temporarily increase the monthly subsidy cap of the program from 400 yuan to 500 yuan. In addition, beneficiaries of public transport fare concession schemes for the elderly and eligible persons with disabilities who take public transport at a discounted fare of $2 per trip will not be affected by the fare increase.

The government will publish the "2022-23 Budget" in February 23 2022. From January to October, the threshold of the "Public Transport Fare Subsidy Scheme" will be reduced from $400 to $200 and the monthly subsidy ceiling will be increased from $400 to $500; The Chief Executive announced in the "Policy Address" in October of the same year that the measures would be extended for half a year. transport\_department/index\_id\_3683.html Extending Temporary Special Measures Under the Public Transport Fare Subsidy Scheme to April Next Year]〉[Press Release], October 28, 2022. </ref>, the "2023-24 Budget" announced that it will be extended for another six months until the end of October 2023.

## Coverage

This article includes only the section about railways

* All railway lines of MTR (including to and from Lo Wu Station, Lok Ma Chau Station, Racecourse Station, Airport Express and Light Rail , excluding East Rail Line First Class surcharge)
* Tram

## Subsidy Amount

If citizens spend more than HKD400 a month on public transport, the government will subsidize 25% of the excess amount, with a maximum subsidy of HKD300.

For example, if a citizen spends HKD500 a month on public transportation, the citizen can get a subsidy of 25 yuan ((500-400)×25%).

Under this scheme, the applicable public transport expenses include the fare paid by Octopus card, and the purchase of designated tickets (such as daily or monthly passes) provided by the public transport services covered by the scheme. As far as designated tickets related to MTR and trams are concerned, Monthly Pass Enhanced Edition, Disney Staff Monthly Pass (excluding Airport Express Travel Ticket) are automatic registrations , the subsidy can be calculated without additional formalities; as for Hong Kong Tramway monthly pass, whether it is purchased by cash, Octopus or other means, it is necessary to present the Octopus card to the staff for registration at the time of purchase, so as to record the relevant expenses with the Octopus Linked to calculate the total expenditure and subsidy amount. As for MTR City Saver, Airport Express round-trip ticket, Airport Express group ticket, Tuen Mun—Nam Cheomg Day Pass, whether purchased by cash, Octopus or other means , must arrive at the "designated vehicle" within 30 daysRegister at the Ferry Ticket Self-registration Station to link the relevant fees with the Octopus records for calculation of total expenses and subsidy amount.

It should be noted that MTR City Tickets purchased with Octopus at the "self-service kiosks" at Ocean Park, Wong Chuk Hang, Lei Tung, South Horizons and Whampoa stations must also be registered at designated train and ferry ticket self-registration stations. Designated train and ferry ticket self-check-in stations are not included in airport express round-trip tickets purchased from ticketing agents. Designated train and ferry ticket self-check-in stations are not applicable to Airport Express round-trip tickets purchased through the MTR online ticketing system (i.e. MTR website or MTR mobile app). Members of the public who purchase Airport Express round-trip tickets through the MTR online ticketing system must follow the instructions in the confirmation email issued by MTR to register online.

Citizens can receive a subsidy of HKD300 if their monthly transportation expenses reach 1,600 yuan, which is equivalent to a 11% discount. Since the stored value limit of the Octopus card is 3,000 yuan, if a citizen receives the subsidy, his Octopus card has a balance of HKD2,800, and the monthly subsidy is 300 yuan, and he can only receive 200 yuan of it, and the remaining 100 yuan subsidy amount. Only when the stored value of the Octopus is less than 2,900 yuan can the full amount be claimed.

## How to receive

From the 16th of each month, citizens can go through the "'*subsidy collection stations" set up in 94 MTR Stations, 5 Light Rail Customer Service Centers, and 22 ferry piers.* "(**Subsidy Collection Points**), and any Template:Evchk, Template:Evchk, Template:Evchk, OctopusMobile App or Octopus Service Station, tap the reader with the Octopus to store the subsidy in the Octopus. The monthly subsidy is limited to three months. moon.

After the implementation of the plan, the subsidy collection stations will be expanded to designated bus terminals.

## Subsidy Status

Under the subsidy scheme, calculated based on the actual public transport expenses paid by citizens, the subsidy amounts in January, February and March 2019 were about $185.7 million, about $120.9 million and about $181.8 million, respectively. The subsidy amount in February was lower than that in January, which is believed to be related to the Lunar New Year holiday and the fewer calendar and working days in February. The number of beneficiaries in the first three months was about 2.35 million, 1.94 million and 2.36 million respectively, and the average monthly subsidy amount received by each beneficiary citizen in the first three months was about 79 yuan, 62 yuan and 77 yuan respectively.

## Future Development

The government intends to launch a review in early 2020 to study the long-term arrangement of the plan and its impact on the overall layout of public transport services and finances based on actual data. The direction of the review will include the scope of public transport services covered by the plan, the arrangements for citizens to register for designated transport tickets and receive subsidies, and the impact on citizens' travel habits, etc. Taking into account the increasing popularity of various electronic payment platforms, the Government will study in detail the feasibility of incorporating applicable electronic payment systems into this plan. The review is expected to be completed in the fourth quarter of 2020.

In January 2020, the government submitted a document to the Legislative Council's Transport Affairs Committee, mentioning that in the first year of implementation of the plan, the total amount of subsidies issued throughout the year was about HKD 1.9 billion, which means that the average monthly subsidy was about 160 million yuan; the average number of beneficiaries per month About HKD 2.2 million, the per capita subsidy amount is about HKD 73. The Transport and Housing Bureau pointed out that it is difficult to distinguish parallel importers based on citizens' travel habits or actual public transportation expenses. However, assuming that they are the group with the highest public transport expenditure, the number of Octopus with an average monthly public transport expenditure of more than 2,000 yuan is about 3,000 before the implementation of the plan. After the implementation of the plan, the number will increase to 3,600, an increase of 20%. In the first year, a total of 2 suspected fraud cases were discovered, and the operators involved have referred 2 cases to the police for investigation and follow-up. The Bureau of Transport and Housing stated that the subsidy plan has begun to review in early 2020. The scope of the review will focus on the deadline, process and collection points for receiving subsidies. The review is expected to be completed in the fourth quarter of 2020. At the same time, more public transport service operators will be encouraged to participate in the scheme and adopt the applicable electronic payment system.

In May 2021, the Government submitted a document to the Legislative Council Transport Panel, indicating that it had initially contacted individual operators of electronic payment systems to study how to expedite the integration of applicable electronic payment systems into the plan, and to consider the issues involved, including the integration of electronic The threshold for the payment system to be included in the plan, the arrangement for uploading and checking the transaction records of the charging system, the arrangement and form of calculating and distributing subsidies, the corresponding monitoring mechanism, preparation time and cost budget, etc. After drawing up a specific implementation plan, we will discuss with the public transport operators, with a view to incorporating the applicable electronic payment system into the plan as soon as possible.

## Case

On June 4, 2020, the customer service officer of the MTR used a total of 15 used Airport Express tickets to "trick" six times, and transferred the ticket purchase records to the Octopus of her boyfriend and younger brother in an attempt to defraud the government of public transportation Fee subsidy. On the same day, she pleaded guilty to 6 counts of falsifying accounts at the West Kowloon Magistrates' Court. The lawyer interceded that the defendant had been fired after the incident, and the amount involved was only more than 500 yuan. Acting chief magistrate Luo Luoquan pointed out that the defendant took advantage of his work to commit the crime and violated his integrity. He decided to ask for a report on the probation and community service order first, and postponed the sentence until the 24th of this month. The prospective defendant will continue to be released on bail of 500 yuan.

The female defendant Li Dingyuan (34 years old) was the customer service officer of the MTR at the time of the case. She was fired afterwards and is now a clerk. She admitted to falsifying MTR ticket sales records six times between February 11 and 14 last year. The facts of the case are that the MTR airport station manager received a report on February 22 last year that there was a discrepancy in the ticketing records of the Airport Express, and found that the defendant had transferred the sales records of several sets of Airport Express tickets to her boyfriend's Octopus, and used it to receive transportation allowances . The defendant later met inside the MTR and admitted to using the used tickets to "hands and feet" to falsify the records of those tickets being resold to her boyfriend. MTR found some train tickets and receipts in the defendant's locker. The manager later discovered other suspicious transaction records and learned that the defendant used his younger brother's Octopus to apply for transportation subsidies in the same way. From CCTV and computer records, MTR confirmed that the defendant logged into the system six times and used 15 tickets to forge accounts. The defendant's boyfriend and younger brother did not know about it, and their Octopus cards showed that they had not received government transportation subsidies. The defendant warned that after the subsidy scheme came into effect, MTR required that the receipt be handed over to passengers when selling tickets. She claimed that in order to reduce errors and test the company's system, she would secretly use the ticket to falsify records when no one was around. Since the defendant could ride the bus for free with a staff Octopus, she used her boyfriend and younger brother's Octopus to see if she could apply for a subsidy. The defendant also claimed that he had no intention of deceiving at first, and that he was greedy later. The defense pleaded that his superiors and colleagues had a good evaluation of the defendant. The defendant was the breadwinner of the family. He was fired afterwards and left a criminal record. Huang has learned a lesson. Huang deeply regrets it. There was no loss to MTR in the incident, and even if the defendant defrauded the government of subsidies, it was only more than 500 yuan.

## Related Items

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1. RIDERCT Template:See hkferryen

## Notes and References

<references>

1. ↑ Legislative Council Proceedings Official Record, October 11, 2018 day.
2. ↑ Chief Executive's Policy Address for October 2017
3. ↑ /tp/minutes/tp20171020.pdf Legislative Council Transport Panel Policy Briefing and Meeting Minutes, 20 October 2017.
4. ↑ Tuen Mun District Council 2016-2017 Traffic and Transport Committee 12th Minutes of Meeting, 17 November 2017.
5. ↑ Yuen Long District Council Traffic and Transport Committee 2017 Sixth Minutes Minutes of Meeting, 9 November 2017.
6. ↑ Tsuen Wan District Council Traffic and Transport Committee Twelfth (April/Monday 7-18) Minutes, November 6, 2017.
7. ↑ gia/general/201712/12/P2017121200525.htm Full text of the Chief Executive’s meeting with the media before the Executive Council, Hong Kong Special Administrative Region Government Press Release, December 12, 2017.
8. ↑ 〈Public transport subsidy included in village buses and red buses〉, Hong Kong Government News Network, December 12, 2017
9. ↑ Legislative Council Finance Committee Voting Results
10. ↑ Transport Department announces implementation details of public transport fare subsidy scheme, HKSAR Government Press Release, November 2018 1 day.
11. ↑ 《PA2019.pdf The Chief Executive's 2019 Policy Address"
12. ↑ 〈The government announced more than 130 billion yuan in comprehensive support for enterprises, employees and citizens〉, Hong Kong Government Press release, April 8, 2020. (supplementary information)
13. ↑ 2020 Policy Address, paragraph 139.
14. ↑ The Government of the Hong Kong Special Administrative Region, 〈The monthly transport expenditure level of the public transport fare subsidy scheme continues to be relaxed to June 30 next year〉[Press Release], December 31, 2020.
15. ↑ The Government of the Hong Kong Special Administrative Region, <Executive Council considers fare increase applications of five franchised bus operators> [Press Release] , March 16, 2021.
16. ↑ The Government of the Hong Kong Special Administrative Region, <2022-23 Budget, paragraph 29>, 23 February 2022.
17. ↑ Temporary Special Measures under the Public Transport Fare Subsidy Scheme] 〉[Press Release], April 29, 2022.
18. ↑ The Government of the Hong Kong Special Administrative Region, <2023-24 Budget - Full Speed Recovery>
19. ↑ Monthly fare of $1,600 to get the upper limit, Oriental Daily, November 2, 2018
20. ↑ News/294008/Traffic Allowance-Available on Saturday-May 15 at the latest for the first month’s allowance-attached collection location [Traffic AllowanceMaximum amount available on Saturday Receive the first month’s allowance as late as May 15 (with collection location)], "Hong Kong 01", February 12, 2019.
21. ↑ LCQ6: Public Transport Fare Subsidy Scheme, 15 May 2019
22. ↑ 2019 Policy Address of the Legislative Council Panel on Transport Transport and Housing Bureau's Policy Measures on Transport, para. 10.
23. ↑ Implementation of Public Transport Fare Subsidy Scheme, Legislative Council Transport Panel Paper No. CB(4)245/19-20(04), January 2020.
24. ↑ News/420208/Traffic Subsidy - Disbursed about 1.9 billion in the first year - Per capita monthly income of 73 RMB - 20% increase in high-spending passengers [Traffic Subsidy First The annual payment is about 1.9 billion, and the per capita monthly income of 73 yuan is increased by 20% for high-spending passengers], "Hong Kong 01", January 10, 2020.
25. ↑ LCQ5: Public Transport Fare Subsidy Scheme, HKSAR Government Press Release, 2019 January 15th.
26. ↑ Implementation and Review Results of Public Transport Fare Subsidy Scheme, Legislative Council Transport Panel Paper No. CB(4)987/20-21(05), May 2021.
27. ↑ [1]