Hong Kong Plans Alcohol Tax Cut To Save Nightlife Industry
The government hopes to make the region a premier clubbing destination by lowering its current alcohol tax, one of the highest in the world.
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Hong Kong plans to lower the amount of tax it levies on spirits in a bid to revive its nightlife industry, Bloomberg reports.
Those familiar with the matter anticipated the tax reduction to be a key point of Hong Kong Chief Executive John Lee's policy address in mid-October. Hong Kong's government has proposed plans to cut 100% value tax on spirits with more than 30% alcohol content. This is one of the highest taxes on alcohol in the world.
Officials are considering implementing a tiered system, in which higher-end spirits would be taxed at a lower rate, while cheaper options on the market would face higher levels of moderation. One source described the proposal to Bloomberg as an effort to encourage people to go to venues and spend money while discouraging bulk-buying.
Hong Kong's nightlife economy has not fully recovered from the negative impact of the pandemic. One of the last areas to reopen clubs and venues post-COVID lockdown, the city only loosened its strict pandemic policies in October 2022.
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