Hong Kong’s government is reportedly planning to cut tax rates on liquor in an effort to revive its nightlife industry.
The new tax cut, which would replace the city’s current 100 percent value tax on liquor with an alcohol content over 30 percent—one of the highest taxes on alcohol in the world—is expected to be officially proposed in Hong Kong Chief Executive John Lee’s annual policy address on October 16, according to a report from Bloomberg.
Government officials are considering implementing a tiered system, in which higher-end liquors would be subject to a lower rate of tax and cheaper liquors would carry higher tax rates, described in the report as an effort to encourage people to attend and spend money at nightlife venues while discouraging bulk-buying and binge-drinking. Discussions surrounding the tax cut are not final and are still subject to change.
Hong Kong’s nightlife sector is still struggling from the economic fallout of the COVID-19 pandemic. The city, known for its tourism economy, was one of the last areas to fully reopen its nightlife venues after its tight lockdown policies were finally slackened in October 2022.
Earlier this month, Ultra Music Festival made its flagship debut in Hong Kong, hosting performances from Alesso, Marshmello, Steve Aoki, Hot Since 82, Miss Monique, and more at the city’s Central Harbourfront Event Space.
Read Bloomberg’s full report on Hong Kong’s liquor tax here.
Featured image from Pexels.com.
