The decision to scrap duties on wine and beer was not about making them cheaper, but about creating business opportunities, Hong Kong's financial secretary said yesterday.
Asking the guests to "enjoy a sip of duty-free wine or beer" at a joint luncheon of the business community, John Tsang said he was trying to ensure that the policies and actions support economic growth in the budget which he revealed on February 27.
"The complicated part of the job is trying to carve up the fiscal pie appropriately. But I believe that if we frame our decision making with certain well-defined goals in mind - in this case supporting economic growth - then focusing on what needs to be done becomes that much easier," Tsang said.
He said the duty scrap was "not about making it cheaper for you all to enjoy your favorite tipple. It's about creating business opportunities in the storage, transport, selling and marketing of wine."
The wine trading business in Hong Kong could increase by up to HK$4 billion (US$512.85 million) after the duty scrap, he said. Obviously it will help create jobs and attract more wine traders to Hong Kong to do business in the region.