60% rise in liquor trading volume after Hong Kong tax cut: commerce chief A cut in Hong Kong’s liquor tax has yielded “encouraging” results after trading volume rose by 60 per cent since the government slashed duties last October, the city’s commerce minister has said. Secretary for Commerce and Economic Development Algernon Yau Ying-wah also said on Tuesday that authorities were studying whether US President Donald Trump’s latest order to impose an additional 10 per cent tariff on Chinese imports included Hong Kong. Speaking on a radio show, Yau revealed that since Chief Executive John Lee Ka-chiu announced in his policy address last October the cut in liquor taxes, the trade value had increased by 1.5 times as of January and the volume by 60 per cent. “The results have been encouraging since we cut the liquor tax. That is a good start,” he said. “We hope to become a trading hub for spirits and boost the business of the catering, hospitality, logistics and warehousing industries along the chain. I also hope that Hong Kong can become the global trading hub for Chinese baijiu. ” Baijiu, which translates as “white alcohol”, usually has between 40 and 60 per cent alcohol content. It is generally distilled from sorghum, although wheat, barley, millet or glutinous rice are also used. Before the cut, the tax rate was 100 per cent on liquor with more than 30 per cent alcohol content, regardless of the price. Under the new policy, the first HK$200 (US$26) will still incur a 100 per cent duty, while the portion above the import price threshold will be taxed at a much lower rate of 10 per cent, making for potentially substantial savings on more expensive spirits. Government coffers received more than HK$700 million in liquor duties in the past financial year, according to official data. Meanwhile, Yau said that Trump’s executive order earlier this month to double the 10 per cent tariff on Chinese imports, which took effect on Tuesday, was vaguely worded. “It is unclear whether Hong Kong is included in this new round of tariffs. We are studying whether the additional 10 per cent is relevant to us,” he said. He added that authorities had decided to file a complaint with the World Trade Organization (WTO) over the additional tariffs, and to clarify the terms of the order. Yau said he believed that even with additional tariffs, the impact on Hong Kong would be minimal as the city’s leader had been visiting different countries in Southeast Asia and the Middle East to expand trading options and mitigate against geopolitical risks. With the coming Hong Kong Shopping Festival, hosted by the Trade Development Council, local brands should use online platforms to navigate new markets, Yau said. He also said the festival would be rolled out in certain Asean countries this year, referring to the 10 members of the Association of Southeast Asian Nations. He added that many local companies were developing e-commerce, but still needed support in digitalising and entering the mainland Chinese market. “Mainland consumers have a high level of confidence in Hong Kong brands, such as health and food products and make-up, so I think they have huge opportunities,” he said. https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3300941/60-increase-liquor-trading-volume-after-hong-kong-tax-cut-commerce-chief (ICE HONG KONG)

Fonte notizia: South China Morning Post