Hong Kong cuts tax on premium liquor imports

Tax on premium liquor is set to be reduced following Hong Kong’s Chief Executive, John Lee Ka-chiu’s 2024 Policy Address presentation.

As a move to revitalise dinning and the city’s nightlife, the import tax on liquor over $200 HKD, and with an alcohol content of 30% and above, will be reduced from 100 percent to just 10 percent, while tax on all liquor below the 200 HKD threshold will remain the same.

Starting October 16, this new tax break will hopefully take off some of business owners’ financial burdens due to rising costs combined with the decrease in local spending. With a sharp decline in revenue in the F&B sector, this move most likely won’t be the cure-all but should help with the profit margins for both small and large businesses in the sector.

In the meantime, the trend of Hongkongers traveling to spots in Mainland China, like Shenzhen, will most likely continue due to affordability and proximity. On top of lowering taxes on premium liquor, other ideas have also been proposed like extending the last train times on the MTR during the weekends.

While there are a lot of things working against Hong Kong, like having some of the world’s highest property prices, the city did regain its position as Asia’s top financial centre over Singapore.

(Photo by George Rose/Getty Images)