'Spirits tax cut won't burden public health system'

Hong Kong's reduction in duty on premium spirits is not intended to encourage consumption and won't create an extra burden on the public health system, the government said on Friday. Duty on liquor with an alcohol content above 30 percent and with an import price of over HK$200 has been cut from 100 percent to 10 percent on the portion above HK$200. Despite concerns that the move will lead to increased alcohol consumption, Secretary for Commerce and Economic Development Algernon Yau said the right balance has been struck. "We believe that a two-tier system can balance various considerations and create a more balanced measure. It reduces concerns from the medical community regarding alcohol abuse, while on the other hand aiming to boost trade in high-end spirits," he told a radio show. Speaking on an RTHK phone-in programme on his Policy Address, Chief Executive John Lee said the the government is very conscious about protecting public health, but is at the same time creating extra opportunities for Hong Kong. "I do see the potential here, not just because of what we learn from the cancellation of wine duty, but in fact there is a big market for high-end liquor such as whiskey, and also brandy, and also a lot of Chinese liquor," he said. Also speaking on an RTHK programme, Financial Secretary Paul Chan said the duty cut won't have a huge effect on prices, noting that around 85 percent of hard liquor in the market is priced under HK$200.

'Spirits tax cut won't burden public health system'

'Spirits tax cut won't burden public health system'

'Spirits tax cut won't burden public health system'

'Spirits tax cut won't burden public health system'

'Spirits tax cut won't burden public health system'