ZJLD applauds liquor tax cuts, bright prospects for premium Baijiu trade

The company noted that this can boost both the liquor industry and local economy. 

ZJLD Group Inc. (ZJLD) has expressed its appreciation for the new liquor tax reduction policy, noting that it does not only benefit the entire liquor industry in Hong Kong but also can boost the local food and beverage, tourism, and other high-value-added industries, thereby benefiting the whole local economy.

"The Hong Kong Government's decision to lower the import duty on liquors will undoubtedly be a major boost for the industry, especially for the local premium baijiu market and its international trade,” said Paul Ng, executive director and head of international operations of ZJLD Group. 

Hong Kong Chief Executive John Lee Ka-chiu issued the "Policy Address," announcing a reduction in liquor tax where the customs duty for liquors with import prices over $200 will be reduced from 100% to 10%, and the portion $200 and below remains unchanged. 

Lee said that the adjustment of the liquor tax is a measure to "consolidate and enhance" Hong Kong's position as an international trade centre. 

He has also referenced the abolishment of the wine tax in 2008 to boost the wine trade and added that such a measure would promote the trade in the liquor business and drive the development of high-value industries. 

Data shows that compared to 2008, wine's import and re-export value increased by 375% in 2023. In 2009, the number of wine trade-related companies in Hong Kong increased by 350, creating 1,000 new jobs. 

The industry's revenue increased by 35% over two years after implementing the duty-free policy. Wine import volumes have also maintained growth, with the number of companies engaged in the wholesale of alcoholic beverages increasing from 310 in 2008 to 800 in 2023, according to government statistics. 

Meanwhile, the number of retail stores selling alcoholic drinks has increased from 140 in 2008 to 520 in 2023. 

Hong Kong ranks as the world's third-largest wine auction centre.