Cut high tax on hard liquor to save Hong Kong’s bar industry amid slump in business, owners urge gov’t
Hong Kong Free Press
Hong Kong’s bar owners are calling for a cut in the tax on hard liquor to save the industry amid a slump in business as residents head to mainland China for cheaper nights out.
Seventy per cent reported that revenue had fallen by 20 to 30 per cent compared to the pre-pandemic period, with the remainder reporting an even larger decline, according to a survey conducted by the Hong Kong Bar & Club Association.
Releasing the survey results on Wednesday, the association said the slowdown in business resulted from Hongkongers heading to mainland China during holidays and the migration wave among wealthy customers.
“If there are not appropriate measures to support the industry, we’re afraid there will be a wave of bar and club closures,” Chin Chun-wing, chair of the association, said in a Chinese statement.
All survey respondents urged the government to cut the excise duty on hard liquor, and 90 per cent of them wanted a delay in the planned ban on shishas, also known as hookahs or waterpipes. Some 80 per cent suggested extending MTR operating hours.
Hong Kong imposes 100 per cent tax on liquor with an alcoholic strength of more than 30 per cent by volume.
Wholesale and sales sector lawmaker Peter Shih said in early September it was one of the highest alcohol duties in Asia. He suggested a pledge in the 2024 Policy Address to lower the tax from 100 per cent to 20 per cent.
Shisha ban
In June, the government announced 10 measures in the short term to curb tobacco use, including banning flavoured cigarettes.
In response to lawmakers’ questions in early July, the health chief Lo Chung-mau said that flavoured shisha would be banned as well. Lo said shishas were another means for tobacco companies to entice the public, especially women and young people, into addiction.
Representatives of the bar and club industry opposed the proposed ban on shishas, saying it represented a significant share of revenue for some bars, local media outlets reported.
Chin said there are currently around 1,300 bars and clubs in the city, 10 per cent of which provide shishas. He urged authorities to delay the ban on them for at least two years.
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