Hong Kong may soon lift import duties on spirits!

Recent reports suggest Hong Kong may soon lift import duties on spirits, just as it did for wine in 2008, a small shot in the arm for struggling F&B and retail hopefully.

In the UK “drink up fast and go home” with high taxes applies whereas in Hong Kong drinking freely, when you like, with fewer or lower taxes and fewer restrictions has been the historical position.

The principle to apply must be that if people are responsible and licensed premises are well-regulated, society won’t face major drinking issues. Amazingly, until 2018 Hong Kong even had no age limit on buying alcohol at retail; it was not seen as needed.

Reportedly the UK Government is talking about tightening the noose on licensed premises further, despite pubs closing at a reported rate of 50 per month. There’s even talk of further restrictions on opening hours. Combining this with controversial smoking bans in outside areas, the food & beverage sector is facing one challenge after another. It looks increasingly like change in the way people live and interact is being imposed on a population, this will see traditional ways of life and social interactions from villages to cities changed and reduced forever.

What’s striking is that many welcomed the new Labour government, hoping for positive changes, yet within months, the approach seems more destructive than beneficial for the F&B industry. Post covid this is the opposite of what’s needed, especially given the immense pressures businesses already continue to face with changed habits and reduced social interactions outside the home; which cannot be healthy.

Meanwhile, Hong Kong remains open and business-friendly, potentially lowering or removing duties, making it a more affordable and welcoming place for the licensed trade to thrive in and whilst much can always be improved at least we are not going backwards.

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