Hong Kong cuts alcohol tax
The import duty on spirits has been reduced from 100% to 10% as part of efforts to stimulate the economy of China’s special administrative region. Read Full Article at RT.com
TroibNews 
Hong Kong has reduced its import duty on premium liquor from 100% to 10% to stimulate the economy. This decision was revealed on Wednesday during a policy address by John Lee, the chief executive of the Chinese region.
The adjustment comes in response to the Chinese government recently implementing anti-dumping duties of up to 39% on brandy imports from the European Union, following tariffs the bloc imposed on Chinese electric vehicles. As a special administrative region of China, Hong Kong enjoys a certain level of autonomy.
The newly established low duties are applicable to high-end drinks with more than 30% alcohol content and priced over $26 per serving.
Lee emphasized that the reduction in duties aims to enhance the liquor trade, promote tourism, and support the development of related industries such as logistics and storage, as part of a comprehensive initiative to “boost the economy and improve people’s livelihood.”
In a similar move back in 2007, Hong Kong's government reduced an 80% duty on wine, eventually eliminating it completely a year later. This earlier action transformed Hong Kong into what has been labeled “the heart of Asia’s wine trade” and established it as one of the globe's largest wine auction centers.
According to government reports released earlier this month, Hong Kong's economy grew by 3.3% in the second quarter of 2024 compared to the previous year. The real GDP for the region is projected to rise between 2.5% and 3.5% this year, following a 3.2% increase in 2023.
Prior to this reduction, Hong Kong's 100% tax on spirits ranked among the highest in the world. Laos is noted as one of the few countries with an even steeper spirit tax of 110%, as reported by The Telegraph, referencing research from Oxford Economics.
In mainland China, the import duty on spirits ranges from 15% to 25%, while in Russia, it is set at 20%.
Lucas Dupont for TROIB News
The adjustment comes in response to the Chinese government recently implementing anti-dumping duties of up to 39% on brandy imports from the European Union, following tariffs the bloc imposed on Chinese electric vehicles. As a special administrative region of China, Hong Kong enjoys a certain level of autonomy.
The newly established low duties are applicable to high-end drinks with more than 30% alcohol content and priced over $26 per serving.
Lee emphasized that the reduction in duties aims to enhance the liquor trade, promote tourism, and support the development of related industries such as logistics and storage, as part of a comprehensive initiative to “boost the economy and improve people’s livelihood.”
In a similar move back in 2007, Hong Kong's government reduced an 80% duty on wine, eventually eliminating it completely a year later. This earlier action transformed Hong Kong into what has been labeled “the heart of Asia’s wine trade” and established it as one of the globe's largest wine auction centers.
According to government reports released earlier this month, Hong Kong's economy grew by 3.3% in the second quarter of 2024 compared to the previous year. The real GDP for the region is projected to rise between 2.5% and 3.5% this year, following a 3.2% increase in 2023.
Prior to this reduction, Hong Kong's 100% tax on spirits ranked among the highest in the world. Laos is noted as one of the few countries with an even steeper spirit tax of 110%, as reported by The Telegraph, referencing research from Oxford Economics.
In mainland China, the import duty on spirits ranges from 15% to 25%, while in Russia, it is set at 20%.
Lucas Dupont for TROIB News
