Letters | Government must manage the consequences of cutting liquor tax

Readers discuss the government’s responsibility to citizens in reducing liquor tax and the penalties being imposed for plastic cutlery

Reading Time:2 minutes

Visitors take part in a drinking competition at the Wine & Dine Festival in Central on October 23. Photo: Eugene Lee

Published: 11:30am, 28 Oct 2024

Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at [email protected] or filling in this Google form. Submissions should not exceed 400 words, and must include your full name and address, plus a phone number for verification

I refer to the reduced duty on high-priced spirits. Under the new two-tier system, the duty on liquor with an import price over HK$200 (US$26) will be reduced from a flat rate of 100 per cent to 100 per cent for the first HK$200 plus 10 per cent for the portion above HK$200. For liquor with an import price of HK$200 or below, the rate remains 100 per cent.

While the government’s intentions are noble – with Chief Executive John Lee Ka-chiu citing the example of the 2008 duty exemption for wines and providing statistics on the growth of the wine trading industry in Hong Kong – the picture is incomplete without considering the impact on local wine consumption, ailments related to increased alcohol consumption, and resulting pressure on the medical system and cost burden on government coffers.

I fully support the government in trying to exploit a business opportunity; however, it is also the government’s responsibility to raise public awareness about the risks associated with alcohol consumption. A warning label on spirits sold locally, like that on tobacco products, would be a good start.

Additionally, regular publication of statistics related to hospitalisation due to the consumption of spirits and tobacco products, as well as related deaths, may discourage those who are not habitual users from engaging in these behaviours.

While the government seeks to create new business opportunities, it must fulfil its primary responsibility of keeping citizens safe from harmful habits that can put additional pressure on the medical profession, lead to untimely deaths, and ultimately cost taxpayers in the long term.