HK's liquor tax cut attractive to overseas business chambers, says commerce chief

Foreign business chambers have expressed interest in setting foot on the city’s booze market after the SAR government announced in the latest policy address a liquor tax cut, said Secretary for Commerce and Economic Development Algernon Yau Ying-wah.

Chief Executive John Lee Ka-chiu previously announced that spirits tax will be slashed to 10 percent and apply only to the portion of the bottle priced over HK$200. Before the move, Kong Kong has had one of the highest spirits duties of any territory in the world, as drinks with an ABV of 30 percent or higher are taxed at 100 percent.

Speaking at the LegCo on Monday, the commerce chief said authorities had made references to the wine tax removal in 2008 before formulating the new policy - with both measures introduced to secure the city’s role as a spirits trading capital.

Yau said the new policy involves the storage, logistics, and dining sectors related to spirits, and authorities will maintain dialogue with various industries about the changes.

He also noted that after the policy was introduced, many foreign business chambers of commerce expressed keen interest in the new policy and have made inquiries.

Meanwhile, Yau said apart from promoting spirits trading, the Trade Development Council and overseas economic and trade offices have made efforts to promote other trades.

The government official said different government departments such as the Trade Development Council and InvestHK offices will promote Hong Kong's advantages on various occasions, including engaging with different enterprises in mainland cities.

The relevant work is within the scope of ensuring that the Commerce and Economic Development Bureau tells the good stories of Hong Kong, he added.