Hong Kong Introduces Two-Tier Duty System for High-Alcohol Liquor to Boost Trade and Tourism

Reduction of duty on liquor with alcoholic strength of more than 30 per cent

As announced in "The Chief Executive's 2024 Policy Address", the Government would reduce the duty on liquor with an alcoholic strength of more than 30 per cent (liquor) by introducing a two-tier system with different duty rates for each tier with effect from today (October 16).

Under the new two-tier system, the duty rate for liquor with import price over $200 will be reduced from 100 per cent to 10 per cent for the portion above $200, while the duty rate for the portion of $200 and below as well as liquor with import price of $200 or below will remain at 100 per cent. The new duty rates will only be applicable to liquor of up to one litre. If a larger container is used, the duty payable will be calculated on a "value per litre" basis.

A Government spokesman said, "Hong Kong has been adopting a simple ad valorem duty system on liquor since 1994. Given the experience in waiving wine duty in 2008, a reduction of liquor duty should similarly promote high-end liquor trade, thereby giving impetus to the development of other high value-added sectors such as logistics and storage, tourism as well as high-end food and beverage consumption, creating more job opportunities and bringing overall benefits to society. With the introduction of a two-tier system with different duty rates based on value, we believe that the proposal has struck a balance between facilitating the liquor business and guarding public health against binge drinking as a result of the reduction in liquor duty."

The above two-tier system is set out in the proposed resolution to be moved by the Secretary for Commerce and Economic Development pursuant to section 4(2) of the Dutiable Commodities Ordinance (Cap. 109) (the proposed resolution), which forms part of the Public Revenue Protection (Duty on Liquor) Order 2024 (the Order) made by the Chief Executive today to give full force and effect of law to the proposed resolution so long as the Order remains in force.

The Order and the proposed resolution have been published in the Gazette today. The Hong Kong Customs and Excise Department has also put up notices at boundary control points and on its websites for travellers and the trade.

SCS briefs civil servants on Policy Address initiatives

After the announcement of "The Chief Executive's 2024 Policy Address",the Secretary for the Civil Service, Mrs Ingrid Yeung, wrote to civil service colleagues this afternoon (October 16) and met with representatives from the four civil service central consultative councils and the four major service-wide staff unions to brief them on policy initiatives relating to civil service matters in the Policy Address.

Mrs Yeung's letter to civil service colleagues, entitled "Enhance Governance Capabilities and Continue to Strengthen Management", outlined the policy initiatives including the strengthening of civil service management and promotion of digitalisation.

She said, "The Hong Kong Special Administrative Region Government is making all-out, concerted efforts to build a vibrant economy, seek development opportunities and improve people's livelihood. Civil servants must continue to serve the public proactively and render full support to the Chief Executive in his administration of Hong Kong, and do so with loyalty, dedication and a spirit of embracing challenges, reforms and innovation. This will elevate Hong Kong to new heights and build a better home for people."

Mrs Yeung added, "To move forward, we need a high-quality and efficient government team. For this reason, I had a meeting with civil service unions after the delivery of the Policy Address, so that the unions and civil servants would have a clear understanding and appreciation of the Government's governing tenets and measures. This would enable them to render better support to the Chief Executive in his administration of Hong Kong and become a solid supporting force for Hong Kong's advancement."

SCS briefs civil servants on Policy Address initiatives Source: HKSAR Government Press Releases