Now, Alcohol Gets Cheaper In Hong Kong As Authorities Decide To Slash Liquor Tax In The City!

If you’re planning a trip to Hong Kong soon, then we have some good news for you all! Hong Kong has announced a massive cut in its liquor tax! In a bid to revive its vibrant nightlife and attract tourists, the Asian financial hub took this step on Wednesday. Read on to know more about it.

Hong Kong Slashes Liquor Tax To Attract Tourists

Hong Kong was once known for its vibrant nightlife and happening clubs. However, due to its revised liquor policy, the prices of alcohol in the financial hub of Asia surged. This caused economic competitiveness and a massive blow to the revenues of clubs in the city. As per a CNBC TV18 report, revenue at the city’s bars was down about 28% in the first half of 2024, as compared to the same period in 2019. Vacant shops have also become a common sight over the years in some of the city’s most popular shopping districts.

So, now to bring back Hong Kong’s reputation as one of Asia’s best travel destinations with a vibrant nightlife and dining scene, Hong Kong’s leader Chief Executive John Lee has announced a cut in liquor tax. As per reports, the duty rate for liquor with an import price of more than 200 Hong Kong dollars (₹2,162 approx.) would be cut down from 100% to 10% for the portion above that price. This tax cut has come into effect starting Wednesday.

Also Read: Paris, New York, Istanbul And Hong Kong Among The List Of Most Visited Cities In The World Based On International Arrivals

What Prompted This Tax Cut?

According to CNBC TV18, Hong Kong is facing economic competitiveness from countries like Singapore, Japan, and even mainland Chinese metropolises. This is mainly because these destinations offer cheaper alcohol and a wider variety of entertainment options. Reportedly, visitors from mainland China are also spending less in Hong Kong now.

Hong Kong authorities have stated an example from 2008 to justify the liquor tax cut. As per reports, back in 2008, wine duties were abolished in the city. Due to this, imports surged 80% in a year and even brought hundreds of new wine-related businesses to Hong Kong!

Also Read: 7 Things To Do In Hong Kong On A 2-Day Trip

What are your thoughts on this step by Hong Kong? Let us know in the comments!

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