Hong Kong, 14th October 2024 – Lawmaker Simon Hoey Lee has put forward a proposal for a phased reduction of Hong Kong’s high liquor tax, advocating for increased initiatives to promote responsible drinking. This proposal emerges at a crucial time as political parties and industry groups ramp up lobbying efforts ahead of the Chief Executive’s upcoming policy address.
Currently, alcoholic beverages with an alcohol content exceeding 30% are subjected to a steep 100% tax in Hong Kong. During a radio show on Monday, Lee outlined his plan for a gradual tax reduction over three years: a 30% decrease in the first two years, followed by a 40% reduction in the third year. This approach aims to invigorate the local spirits industry and reinforce Hong Kong’s status as a vital trade and export center for beverages, including traditional Chinese liquors such as Baijiu.
Nevertheless, Lee acknowledged the potential downsides of his proposal, emphasizing the need for a strong public health strategy to address any adverse effects that may arise from increased alcohol consumption. He noted that while there is a nominal commitment to promoting responsible drinking in Hong Kong, current efforts lack visibility and a cohesive framework.
The proposal has garnered criticism from public health advocates. A former health official labeled the potential tax cut as “regressive,” expressing concerns that a reduction in tax could lead to a rise in alcohol-related health issues unless paired with effective public health measures.
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