By South China Morning Post | Created at 2024-11-27 10:50:25 | Updated at 2024-11-30 04:48:14
2 days ago
One of Hong Kong’s largest wine and spirit retailers has reduced prices for some of its most high-end products by as much as 59.2 per cent, following the government’s decision to effectively cut liquor tax in the premium market.
Local chain Watson’s Wine said on Wednesday it was rolling out price cuts on “a large range of carefully curated premium spirits, making world-class spirits more accessible to Hong Kong connoisseurs.”
“Watson’s Wine … announces its support for the government’s initiative to reduce duty rates on high-end liquor products, in alignment with the economic growth agenda published in the 2024 policy address,” a spokeswoman said.
Chief Executive John Lee Ka-chiu unveiled the move in his policy address in October, slashing the liquor duty on spirits with over 30 per cent alcohol content and an import price above HK$200 (US$25.70).
The tax rate was previously 100 per cent on liquor with more than 30 per cent alcohol content, regardless of the price.
Under the new policy, the first HK$200 will remain subject to a 100 per cent duty, while the portion exceeding the import price threshold will be taxed at a much lower rate of 10 per cent.
Watson’s Wine said it was lowering prices on over 100 premium spirits, with reductions of up to nearly 60 per cent on certain items.
