One of Hong Kong’s largest wine and spirit retailers, Watson’s Wine, has slashed prices on a wide range of high-end products by as much as 59.2%, following a government decision to reduce liquor duties on premium spirits.
The local chain announced on Wednesday that it would be rolling out significant price reductions on a curated selection of top-tier spirits, aiming to make these world-class products more accessible to Hong Kong’s discerning consumers.
“Watson’s Wine supports the government’s initiative to lower duty rates on high-end liquors in line with the economic growth agenda outlined in the 2024 policy address,” a company spokesperson said.
The announcement follows a move by Hong Kong Chief Executive John Lee Ka-chiu, who, in his policy address last month, revealed plans to cut the liquor tax on spirits with more than 30% alcohol content and an import price exceeding HK$200 (US$25.70). Previously, liquor in this category was taxed at a flat rate of 100%, regardless of price. Under the new policy, the first HK$200 of the import price will still be taxed at 100%, but any amount above that threshold will be subject to a significantly lower tax rate of 10%.
As a result of this change, Watson’s Wine has reduced prices on more than 100 premium spirits, with some products seeing discounts of up to 59.2%.
“Watson’s Wine welcomes the government’s latest policy on spirits and believes the duty reduction will benefit both our customers and the industry as a whole,” said Jeremy Stockman, managing director of Watson’s Wine. “With these price reductions and our continued investment in innovative retail concepts, we aim to help position Hong Kong as a leading hub for high-end liquor.”
Among the most notable price cuts is the Tesseron Cognac Experience 01, which saw its price drop from HK$36,800 to HK$15,000, a 59.2% reduction. Another Tesseron product, the Signature XO Passion, was reduced by 41.3%, from HK$15,000 to HK$8,800. Other premium spirits, including cognacs from Martell and whiskies from Ardbeg, Balvenie, and Macallan, also saw significant reductions ranging from 6.7% to more than 30%.
The government’s decision to cut taxes on premium spirits is part of a broader strategy to stimulate the high-end liquor market and revive Hong Kong’s tourism and hospitality sectors. This move echoes the success of similar measures taken in 2007 and 2008, when the city reduced wine duties, resulting in a 375% increase in the value of wine imports between 2007 and 2023.
While the tax cuts may reduce government revenue by hundreds of millions of dollars, officials remain optimistic that the policy will ultimately boost the city’s premium spirits market, tourism, and related industries.
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