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No change leaves traders saddled with high duties

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There were no celebratory toasts from wine lovers and importers, with taxes on alcohol and tobacco remaining unchanged.

Jo Purcell, Asia representative of fine wine company Farr Vintners, said: 'I don't think the wine trade will be popping champagne corks or raising their glasses after this budget speech.'

The city's alcohol and tobacco excise duties are among the highest in Asia. Importers pay 40 per cent on beer, 80 per cent on wine and 100 per cent on spirits, while $804 is charged on 1,000 cigarettes and $1,035 on each kilogram of cigars.

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Ms Purcell described the budget as disappointing, and said that even if the government refused to lower the duty, it should revamp the methods used by customs and excise officials to value wine.

Importers say customs authorities assess wine based on previous imports or sales, rather than on the receipt or invoice figures they supply.

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Ian Carroll of Soho Wines said: 'Customs decide how much your wine is worth, regardless of what you've paid for it. They have records that go back donkeys' years on everyone who has ever imported a product and that's what they base it on. Then they tax you on that. It's usually higher.'

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