Hong Kong must ramp up efforts to promote responsible drinking if it cuts liquor tax: lawmaker Hong Kong must ramp up its promotion of responsible drinking as a mitigation measure if the government pushes ahead with a cut to the city’s liquor tax, a lawmaker has said, while a former health official has called the move “regressive” for society. Lawmaker Simon Hoey Lee said on a radio show on Monday that relaxing the city’s liquor tax would foster the growth of the spirits trade, and suggested the government reduce it gradually over three years – cutting 30 per cent each in the first two years before slashing 40 per cent in the third year – to review its social and economic impact. But he also pointed out that more mitigation efforts must be put in place on the public health side, saying current efforts to promote responsible drinking in the city lacked visibility. “There’s been a goal, but it hasn’t received much attention in the past,” Lee said. “There is no comprehensive system or package to remind people about drinking responsibly.” Lee called for the measures as political parties and industry groups lobbied the government before the chief executive’s policy address on Wednesday to either lift or adjust the 100 per cent tax on drinks with an alcohol content of over 30 per cent to boost the city’s status as a spirits trade and export hub. While noting the possible social impact of increased alcohol consumption, Lee said he nonetheless supported the adjustment of the liquor tax to boost trade, adding Hong Kong also had great potential to export Chinese liquor, such as baijiu. “Over the past five years, the growth of Hong Kong’s baijiu sales has reached 40 per cent. The mainland’s baijiu market has reached 620 billion yuan (US$79.8 billion), with 0.24 per cent being exported. There is a huge demand in the international market for baijiu,” Lee explained. He said the liquor tax currently made a scant contribution of 0.156 per cent, or about HK$700 million (US$90 million), to the government’s taxation revenue. The lawmaker added that increased affordability of high quality liquor from a tax cut would also help eliminate cheaper poor quality spirits from the market. He said he had not noticed a “steep rise” in wine consumption after the city scrapped its wine duty in 2008. “Wine sales mainly went to trade, enabling industries such as trade, tourism, auctions, sales, marketing and packaging to grow. Hong Kong’s wine consumption did not increase, but it became a wine trade centre,” Lee said. Hong Kong adopted a duty-free policy for wines in 2008, a year after authorities slashed the wine and beer tax from 80 per cent to 40 per cent. Lee said wine imports to Hong Kong increased by respective 80 per cent and 45 per cent over the two years after the wine duty was lifted. “In the year after the wine duty was cut, the number of companies in relevant trades increased by 31 per cent, while the number of professionals increased by 14 per cent,” the lawmaker added. But Dr Regina Ching Cheuk-tuen, a former assistant director of the Department of Health and current assistant honorary secretary for the Hong Kong Alliance for Advocacy Against Alcohol, argued against the relaxation of the liquor tax and said the move would be a step backwards. “From a public health perspective, this is a regressive step. The World Health Organization has made it clear that taxation is an important instrument [to curb alcohol abuse],” Ching said. The doctor warned that more Hongkongers would consume spirits in greater volumes once stronger alcoholic drinks became more affordable at lower prices, with young people particularly at risk. “Youngsters are willing to try new things, and they may not have a high salary in their initial years of working. If the prices are lowered, of course they will give it a try, because they can,” Ching said. https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3282243/hong-kong-must-ramp-efforts-promote-responsible-drinking-if-it-cuts-liquor-tax-lawmaker (ICE HONG KONG)

Fonte notizia: South China Morning Post