HONG KONG, CHINA. In a move designed to boost the local food & beverage and catering sectors, the Hong Kong government today slashed the duty rate for liquor (over 30% strength) with an import price of over HK$200 (US$25.70) from 100% to 10% for the portion above HK$200. The measure is effective immediately.
The duty rate for the portion of HK$200 and below, as well as liquor with an import price of HK$200 or below will remain unchanged.
Chief Executive John Lee made the announcement today (16 October) as he delivered his annual policy speech to the Legislative Council.
While the move will benefit bar, restaurant and downtown retail owners, the sharp reduction in duties will seriously erode the price advantage offered by Hong Kong duty-free retailers in departures and arrivals stores.
Lee said the government had made reference to its successful driving of the local wine trade through exemption of duty.
We will bring you further analysis soon. ✈
