NEWS
IMPORTS OF SPIRITS TO H.K. GREW IN VOLUME BUT DECLINED IN VALUE AFTER TARIFF CUT
By Siulan Law Mathews DipWSET
28-5-2025
Source: Unsplash
Spirits imports to Hong Kong have grown 18.73 percent in volume but declined 8 percent in value between October 2024 and March 2025, according Official trade data of the city.
This development went against market expectations when the Hong Kong government slashed the spirits tax on bottles priced over HKD200 (USD26) from 100 percent to 10 percent in October 2024.
The average import price per litre has also seen a substantial dip. It fell to HKD 281.63, a 8.26 percent drop year-on-year.
Take for France, its brandy exports to Hong Kong declined 1.74 percent in value compared to the same period last year.
France is Hong Kong’s top supplier of brandies, supplying 98.3 percent of Hong Kong’s total brandy imports with a market value of HKD 1 billion.
The UK, Hong Kong's top whisky supplier, faced an even steeper decline. Its whisky export value dropped 14.77 percent quarter-on-quarter to HKD 334.1 million and a significant 23.05 percent year-on-year.
Compared to 2008 when the Hong Kong scrapped wine tax to boost its wine sales, the impacts of the scrappage of spirits tax is highly disappointing.
The 2008 wine tax repeal led to an 80 percent jump in wine import value in the first year and another 45 percent increase the following year, along with cumulative volume growth of 54 percent over five years.
Industry analysts said many consumers who have expected a huge drop in retail prices of spirits were disappointed at the relatively unchanged price tags, this partly explained why the reduction in spirits tariffs did not yield expected results.
Analysts said consumers misunderstood that the 10 percent duty applied to the full price, but actually it only applies to the portion above HKD200 per bottle, as such the actual price cuts were not as significant as consumers had hoped.
Moreover, the current consumer sentiment in Hong Kong is much weaker compared to 2008 when the wine tax was repealed.
(the writer can be contacted at: info@thewinechronicle.com)
ALL RIGHTS RESERVED
**IF YOU THINK THE WINE CHRONICLE IS WORTH SUPPORTING, PLEASE MAKE A DONATION TO HELP US IMPROVE AND CONTINUE OUR WORK**
TRENDING│ FOCUS│ MISSION│ ABOUT US│ CONTACT
| 