The 2024 Policy Address in Hong Kong announced a tax cut on premium liquor imported with a price of over HK$200 to boost tourism and consumption of high-end food and beverages. Chief Executive John Lee revealed that the existing 100 per cent tax on liquor with an alcoholic strength of more than 30 per cent will be reduced for the most expensive brands. The duty on liquor with an import price exceeding HK$200 will now be reduced from 100 per cent to 10 per cent for the portion above HK$200, effective immediately. However, the tax rate for liquor with an import price of HK$200 or below will remain unchanged.
This move aims to promote the liquor trade and enhance the development of high value-added industries such as logistics, storage, tourism, and high-end food and beverage consumption. Lawmaker Peter Shih had previously pointed out that Hong Kong had one of the highest alcohol duties in Asia and suggested lowering the tax rate to 20 per cent. The recent survey by the Hong Kong Bar & Club Association indicated that 70 per cent of bar owners experienced a 20 to 30 per cent decrease in revenue compared to pre-pandemic levels, with some reporting an even larger decline. The reasons cited for this slowdown included Hongkongers traveling to mainland China during holidays and a migration wave among wealthy customers.
Respondents of the survey urged the government to cut the duty on hard liquor and requested a delay in the planned ban on shisha, also known as hookah or waterpipes. Additionally, 80 per cent of respondents suggested extending the operating hours of the MTR. These recommendations aim to support the struggling bar industry and address the challenges faced by bar owners in Hong Kong.
As a journalist based in Hong Kong, I have closely followed political, criminal justice, human rights, social welfare, and education issues in the city. With a background in journalism and politics, I have covered significant events such as the aftermath of the 2019 extradition bill protests and the impact of the Covid-19 pandemic on Hong Kong. My work also involves documenting the changes in Hong Kong under the national security law imposed by Beijing. Prior to joining Hong Kong Free Press, I gained experience in reporting on the 2019 citywide unrest for South China Morning Post’s Young Post, where I covered sports and youth-related matters as well.
In conclusion, the tax cut on premium liquor in Hong Kong is a significant step towards revitalizing the bar industry and promoting high-end food and beverage consumption. The government’s decision to reduce taxes on expensive liquor imports will not only benefit businesses but also contribute to the development of key industries in the city. By addressing the concerns of bar owners and responding to the challenges faced by the sector, Hong Kong aims to stimulate economic growth and enhance the overall consumer experience in the hospitality industry.
