Proposal for FY 2007-2008

Wine Duty Taskforce

BackgroundBackground

Wine duty in Hong Kong is too Wine duty in Hong Kong is too

high (80% since 2002)high (80% since 2002)

Ad Valorem duty system is Ad Valorem duty system is

expensive to administerexpensive to administer

High Wine DutyHigh Wine Duty

Brings no increase in duty revenueBrings no increase in duty revenue

Contradicts the pledge to become the Contradicts the pledge to become the

region’s wine centerregion’s wine center

Hinders imports of high quality winesHinders imports of high quality wines

Hampers HRI trade & tourismHampers HRI trade & tourism

Limits consumers’ choicesLimits consumers’ choices

Ad Valorem (AV) Ad Valorem (AV) Duty SystemDuty System

Expensive to administer for the Expensive to administer for the

government as well as for government as well as for

importers & tradersimporters & traders

Specific Duty (SD) system can do Specific Duty (SD) system can do

the same job at lower coststhe same job at lower costs

ObjectivesObjectives

Form a taskforce to work on a proposal to Form a taskforce to work on a proposal to

reduce wine duty and the replacement of reduce wine duty and the replacement of

the AV duty systemthe AV duty system

Take appropriate steps to support the Take appropriate steps to support the

taskforce’s proposaltaskforce’s proposal

Reach consensus on the proposalReach consensus on the proposal

Relate the message to the governmentRelate the message to the government

TaskforceTaskforce

Various consulatesVarious consulates

Wine tradeWine trade

Tourism tradeTourism trade

HRI tradeHRI trade

ActionsActions

Survey on the general public, wine trade, Survey on the general public, wine trade,

HRI trade & the tourism sectorHRI trade & the tourism sector

Study the time/costs spent on the AV Study the time/costs spent on the AV

duty system by the wine trade and the duty system by the wine trade and the

governmentgovernment

On-going discussions with Legislators & On-going discussions with Legislators &

government officialsgovernment officials

Time-line (2006)Time-line (2006)

Meeting potential members of the taskforceMeeting potential members of the taskforce Jul/AugJul/Aug

Formation of the taskforceFormation of the taskforce End AugEnd Aug

Agreeing on the objectives/plans of the taskforceAgreeing on the objectives/plans of the taskforce Early SepEarly Sep

Inviting & evaluating proposals for surveys/studiesInviting & evaluating proposals for surveys/studies SepSep

Surveys & Study (AV system v. SD system)Surveys & Study (AV system v. SD system) OctOct

Analysis and drafting of the proposalAnalysis and drafting of the proposal NovNov

Present the final proposal to the governmentPresent the final proposal to the government DecDec

Discussions with Legislators & government officialsDiscussions with Legislators & government officials (On-(On-

going)going)

Presentation to the mediaPresentation to the media (Optional)(Optional)