The Hong Kong government has introduced a new tax incentive bill aimed at revitalising the transport and logistics sector. Known as the ‘2026 Tax (Amendment) (Tax Incentives for Activities Related to Transport and Physical Large‑Scale Commodity Transactions) Bill’, the proposal seeks to encourage both domestic and cross‑border freight operators to expand their services by offering selective tax reductions and exemptions. Eligible activities include the carriage of bulk commodities, the operation of specialised logistics hubs and the utilisation of innovative digital platforms that improve supply‑chain efficiency. Incentives are structured as a combination of reduced profits tax rates for a defined period and targeted allowances for capital expenditure on transport‑related infrastructure. The legislation also establishes clear eligibility criteria, requiring firms to meet localisation targets and to demonstrate measurable contributions to the territory’s trade volume. Stakeholders have responded positively, highlighting the potential to lower operating costs and attract investment in automation and green logistics. Critics, however, warn that the expected fiscal loss must be offset by genuine economic gains, and they call for strict monitoring to prevent abuse. If enacted, the bill would be effective from the first day of the subsequent financial year, with an initial review scheduled after two years to assess its impact on employment, freight rates and overall economic growth.