Hong Kong: Hong Kong Lowers Liquor Tax in Boost to Distilled Spirits Trade

On October 16 the Hong Kong Government (HKG) announced a significant reduction in the duty on imported alcoholic beverages with an alcohol content above 30 percent by volume. The new policy reduces the duty from a flat 100 percent tax to a tiered duty in which the initial value up to HKD $200 ($25.64) per liter remains at 100 percent, while the duty on value above HKD $200 ($25.64) per liter is reduced to 10 percent. The reduction was included in the HKG’s annual policy address, which focused on measures to spur economic activity in the region, particularly as it relates to investment and tourism. The lower duty is expected to support greater consumption of distilled spirits and is particularly beneficial to premium brands.