Hong Kong’s trade promotion body has hailed the recent tax cut on liquor as a “first step” in turning the city into a hub for the spirits trade, but some distributors have said the move will not make them more competitive in the market.
Sophia Chong Suk-fan, deputy executive director of the Trade Development Council, said on Monday that activities and interest around liquor trading had “significantly increased” since the tax cut was announced in last week’s policy address.
“Because of this vast reduction of the high value liquor tax, I think this already gives some momentum and some impetus for the spirits and liquor traders to come to trade via Hong Kong,” Chong said at a press event ahead of a coming industry fair.
“It is a good first step … Having said that, I think there are still second and third steps forward to make sure that there are other subsequent services and policies to help build [and] further reinforce Hong Kong as the spirits and wine trading hub.”
On November 7, the council will host its 16th Hong Kong International Wine and Spirits Fair. The three-day event will feature more than 600 exhibitors from 20 countries and regions, including mainland China, Europe and the Americas.
The event comes on the heels of the move in Chief Executive John Lee Ka-chiu’s third policy address last Wednesday to reduce the liquor tax on spirits with an alcohol content of more than 30 per cent and an import price over HK$200.
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