Hong Kong should slash the liquor tax rate to 20 per cent from the current 100 per cent, three industry groups have said, arguing the reduction will help spur the city’s economy.
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The trio urged Chief Executive John Lee Ka-chiu to consider the proposal for his policy address next month, after two of the city’s major political parties in July also called on him to scrap or adjust the spirits tax.
Hong Kong currently has a 100 per cent levy on any liquor with an alcohol strength of more than 30 per cent. The city adopted a zero duty for wines in 2008.
The Hong Kong General Chamber of Wine and Spirits, the Hong Kong and Kowloon Provisions, Wine and Spirit Dealers’ Association and the Hong Kong Food Drink and Grocery Association made the joint appeal alongside the sector’s representative in the legislature, Peter Shiu Ka-fai.
Jojo So Yau-Ping, founding president of the Hong Kong General Chamber of Wine and Spirits, said they suggested the government cut the tax to 20 per cent and review the rate two to three years later.