Chief Executive John Lee attended a radio program regarding the Policy Address today (Oct. 17) where he responded to the phenomenon of citizens traveling to the mainland for shopping. He noted that it is unrealistic to prevent citizens from consuming outside Hong Kong, and that it is normal for consumers to seek more competitive markets.
He stated that Hong Kong's economy is currently undergoing a transitional period, with poor retail conditions and structural changes in tourist consumption. He believes the industry needs to implement reform, and the government will do its best to assist the industry in shortening the transition period.
He further mentioned that high shop rents in Hong Kong are a structural issue that the government must handle carefully.
Regarding the proposal in the Policy Address to reduce the tax rate on imported liquor priced over HK$200 HKD to 10%, he emphasized that the government has never encouraged citizens to drink alcohol. Still, they believe that reducing the liquor tax will help promote high-end liquor trade.
He cited the previous exemption of wine tax, which brought significant economic benefits. He also pointed out that imported liquor priced over HK$200 accounts for only 15% of all liquor, and the tax revenue from other liquor will remain unaffected.
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