Liquor industry calls for duty reduction amid opposition from health sector

The liquor industry is advocating for a reduction of up to 30 percent in duty on strong liquor as the upcoming Policy Address is set to be released on Wednesday (Oct 16).

Chin Chun-wing, chairman of the Hong Kong Bar and Club Association, urges the government to abolish the duty system to reduce business costs, noting that current procurement costs make up nearly 30 percent of bar expenses. 

He noted that if a bar earns HK$300,000 per month, eliminating the duty could save costs up to HK$30,000 monthly.

However, the suggestion has sparked opposition from the medical and health sector. 

Hong Kong Alliance for Advocacy Against Alcohol convener Mak Sin-ping opposes a reduction in duty, emphasizing that alcohol is a Group 1 carcinogen that poses significant risks to public health. 

Mak referenced World Health Organization's guidelines for effective alcohol control, which include raising prices and enhancing public education. She added that the Alliance regularly submits recommendations against duty cuts, and contacted the Chief Executive in August this year to express their opposition.

Regina Ching Cheuk-tuen, Honorary Secretary of the Alliance, highlighted that around 3.7 million people die globally each year from alcohol-related issues, warning that reducing the duty could further burden the healthcare system.