The leader of Hong Kong announced this Wednesday a reduction in the tax on alcoholic beverages, at a time when the Asian financial center expects Rekindle reputation as a tourist destination with nightlife. and vibrant gastronomy.
After enacting a national security law, as defined by Beijing, CEO John Lee now faces economic challenges and regional rivals such as Singapore, Japan and even cities in mainland China.
Changes in the lifestyles of Hong Kong residents and a wave of middle-class emigration during the Covid-19 pandemic have reduced local demand.
Many residents now prefer spend weekends in chinaattracted by lower prices and a greater variety of entertainment options. Mainland visitors are also spending less in the city than before.
It is common to see empty stores in the most popular shopping areas of the city and The income of the city’s bars fell by around 28% in the first half of this year compared to the same period in 2019, preliminary official data indicate.
In his annual policy speech, Lee said the tax rate for alcoholic beverages with an import price above HK$200 (about 24 euros) will now be reduced by 100% to 10% above that price.
The official said he hopes this policy will boost the logistics, warehousing, tourism and luxury restaurant sectors.
In 2008, when Hong Kong abolished taxes on wineImports increased by 80% in one year and the city welcomed hundreds of new wine-related companies.
Lee, a former security secretary chosen by Beijing to lead China’s special administrative region, pushed for the new security law in March. Critics said they feared the law would reduce civil liberties promised to the former British colony when it returned to Chinese rule in 1997.
This law followed a similar law imposed on Hong Kong by Beijing in 2020, following anti-government protests that rocked the city in 2019. Since it came into effect, many prominent local activists have been prosecuted and others have gone into exile. For the regional government, security laws are necessary for the stability of the territory.
These dramatic political changes have also led many middle-class families and young professionals to emigrate to the United Kingdom, Canada, Taiwan and the United States.
To attract more wealthy emigrants, Lee also revised a plan that grants residency to applicants who invest a minimum of 30 million Hong Kong dollars (about 3.6 million euros) in certain types of assets. Starting this Wednesday, home purchases valued at 50 million Hong Kong dollars (about 5.9 million euros) or more can account for up to a third of the requirement, he said.
Hours before Lee’s speech, a small group of activists from the League of Social Democrats, one of the few remaining pro-democracy parties in the city, organized a small demonstration in front of the government headquarters.
They demanded universal suffrage for executive elections and a retirement pension plan: “return to democracy, improvement of people’s living conditions,” they shouted.
Source: Observadora
