Hong Kong cuts liquor tax in an effort to reignite its nightlife industry

Associated Press

HONG KONG (AP) — Hong Kong’s leader has announced a cut in liquor taxes as the Asian financial hub hopes to revive its reputation as a travel destination with a vibrant nightlife and dining scene. After fulfilling Beijing’s long-standing imperative to enact a homegrown national security law, Chief Executive John Lee now faces challenges with economic competitiveness. Changes in residents’ lifestyles and a wave of middle-class emigration during the COVID-19 pandemic have dampened local demand. In his annual policy address on Wednesday, Lee said the duty rate for liquor with an import price of more than $26 would be slashed from 100% to 10% for the portion above that price. He hoped the policy would foster the logistics, storage, tourism and high-end dining industries.