NEWS
HONG KONG’S SPIRITS TRADE GREW 150% IN VALUE SINCE SLASHING DUTIES
By Susan Lewis
25-3-2025
Credt: Edward Howell/Unsplash
The value of spirits traded in Hong Kong has increased 150 percent while volumes boosted by 60 percent since the government slashed spirits duties last October.
These figures, confirmed earlier by Hong Kong’s commerce secretary Algernon Yau Ying-wah, showed that the new tax structure which aims at encouraging trading of premium liquors is working.
Previously, Hong Kong taxed drinks with ABV of 30 percent or higher were at 100 percent, which is one of the highest spirits duties in the world.
Starting from 16 October last year, spirits with ABV 30 or higher are taxed 100 percent for prices under HKD200 (USD26.6), prices over the HKD200 threshold are only taxed at 10 percent.
Such a tax structure is highly beneficial to high value spirits but not quite for entry level bottles.
“The results have been encouraging since we cut the liquor tax. That is a good start," Yau said in a radio programme.
"We hope to become a trading hub for spirits and boost the business of the catering, hospitality, logistics and warehousing industries along the chain," he added.
According to Oxford Economics, a business think tank, Hong Kong’s spirits trade contributed HKD4 billion to Hong Kong's GDP in 2023, having created 5,200 jobs and generated HKD1.3b in tax revenues.
The company predicted that the new tax structure will bolster Hong Kong's position as a leading spirits trading hub in Asia.
(the writer can be contacted at: info@thewinechronicle.com)
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