Exclusive: Ghana's John Mahama on his planned presidential comeback
Exclusive: Ghana's John Mahama on his planned presidential comeback
Exclusive: Ghana's John Mahama on his planned presidential comeback
Exclusive: Ghana's John Mahama on his planned presidential comeback
Exclusive: Ghana's John Mahama on his planned presidential comeback
Exclusive: Ghana's John Mahama on his planned presidential comeback
Hong Kong has announced a significant cut to its liquor tax in a bid to reignite its nightlife and dining scene.
Effective Wednesday, October 16, the tax on imported liquor priced over 200 Hong Kong dollars (approximately $26) has been slashed from 100% to 10% for the portion exceeding that threshold.
Hong Kong's Chief Executive, John Lee, highlighted the need for this policy change in his annual policy address.
"To promote the trade of spirits and drive the development of high value-added industries such as logistics and storage, tourism and high-end catering consumption, the government referred to the successful experience of abolishing the wine tax to promote the trade of red wine and decided that from today, for spirits with an import price of above 200 HK dollars [25.8 USD], the tax rate on the part above 200 HK dollars will be reduced from 100 percent to 10 percent, while the tax rate remains unchanged on the part valued at 200 HK dollars and below. For spirits with an import price lower than 200 HK dollars or below, the tax rate remains unchanged," John Lee explained in footage provided by AFP.
The city has faced economic challenges, including a decline in local demand due to changes in residents' lifestyles and a wave of middle-class emigration during the COVID-19 pandemic.
The liquor tax cut is expected to reignite Hong Kong's nightlife industry, which has seen a significant downturn. Preliminary data showed that revenue at the city's bars was down about 28% in the first half of 2024 compared to the same period in 2019.
By making liquor more affordable, the government hopes to attract both locals and tourists back to the city's bars and restaurants, thereby boosting overall economic activity.
This isn't the first time Hong Kong has used tax policy to stimulate the alcohol market. In 2008, the city abolished wine duties, leading to an 80% increase in imports within a year and the establishment of hundreds of new wine-related businesses.
The government is optimistic that the current tax cut will have a similar positive impact on the liquor market.
