Zetland Financial Group reports the decision by Hong Kong to do away with duties on wine and beer could lead to the territory's ascension as Asia's top wine distribution and storage center.
Hong Kong (PRWEB) March 23, 2008 -- The Hong Kong government raised its people's spirits after it scrapped duties on wine and beer -- a move that could also transform the territory into a distribution hub, according to Zetland Financial Group.
Jack So, chairman of the Hong Kong Trade Development Council (TDC), welcomed the initiatives announced by Financial Secretary John Tsang in his budget speech last month, Zetland reports on its website.
Tsang proposed to immediately exempt the duties on wine and beer to promote the local wine trading and distribution industry. The 80 percent duty was halved to 40 percent last year.
"The wine duty exemption will bring more opportunities to Hong Kong, including auctions and wine distribution and storage," So says. "With its proximity to the Chinese mainland and the new wine duty exemption, Hong Kong is now set to become the international wine industry's preferred platform for promoting wine to the mainland market."
Asia's wine market is expected to grow 10-20 percent per year in the next five years with regional consumption set to double, a study released by a Hong Kong trade body found recently.
Mainland China, Hong Kong, Taiwan, Singapore and Korea will lead growth as consumption value in the region, excluding Japan, will reach 130 billion Hong Kong dollars (US$16.67 billion) in 2012 and HK$210 billion in 2017.
The TDC said mainland China will be the key driving force for Asia's growth with China being the biggest importer in volume. The country will import HK$870 million worth of wine by 2017.
Tsang said recently the wine and beer duty scrap, as popular a decision as it was, was "not about making it cheaper for you all to enjoy your favourite tipple. It's about creating business opportunities in the storage, transport, selling and marketing of wine."
The volume of wine trading business in Hong Kong could increase by up to HK$4 billion after the move as "consumers across Asia are enjoying higher living standards, and becoming more discerning too," he said.
Hong Kong-based Zetland Financial Group provides an array of detailed financial analyses on its website each month. Since 1987, Zetland's professional consultants have tackled a range of business issues -- from investment opportunities to jurisdictional changes in legal, tax and accounting matters -- for clients around the globe.
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