HEAVY taxes on alcohol are crippling sales and threatening Hong Kong's image as a tourist destination, with the Government being the biggest loser, liquor importers and industry representatives warn.
Sales of imported spirits in Hong Kong dropped by about 10.5 per cent last year, causing a net fall in the total tax revenue, according to the chairman of the Liquor and Provision Importers Association, Claes Rydberg.
''This means the Government is losing, the consumer is losing and we are losing. That cannot be right.'' Mr Rydberg said the association had on many occasions requested that the Government carry out a complete overhaul of the alcohol duties system, but had so far had no concrete response.
He said the two-tier system, where tax on Chinese spirits was many times lower than that on other imported alcohol, was not only unfair but could also be against the guidelines laid down by the General Agreement on Tariffs and Trade.
At present, the Government imposes a duty of $80 on every litre of spirits, plus an additional 35 per cent on the value of the drink. Chinese spirits are taxed at about nine per cent.
Imported wine is taxed at $34 a litre plus 20 per cent, with sparkling wine harder hit at $49 and 35 per cent.