Public health implications of wine duty reduction in Hong Kong

Abstract

Objectives: The Hong Kong Government removed the duties on wine and beer in 2008, so as to make the city as international wine trading hub. This article looks into the public health implication of zero duty policy. This article reviewed the relevant papers narratively and made critical appraisal accordingly.

Background: On the Budget Day of 27 February 2008, the Financial Secretary announced the removal of duties on wine and beer, and made it immediately effective through an executive order under the Public Revenue Protection Ordinance. The wine duty had been decreased from 40% to 0%, and beer duty, as well as, duty on any liquors with alcoholic content less than 30%, had been decreased from 20% to 0%. Stimulated by the drop in alcohol price, the consequences of expected increase in alcohol consumption were worrying. According to a U.K. study, alcohol was ranked the most harmful drugs due to its easy accessibility.[7] Study conducted by Department of Health of Hong Kong [31] pointed out that several public health and social problems arisen in recent years. For instance, the number of alcohol-related admissions to hospitals under Hospital Authority had increased since 2007 and the number of sexually assaulted victims under the influence of drug or alcohol had recorded a drastic rise since 2005.The policy did bring economic interests, but the resulting public health problems should be worth attending to when public health advocacy was not strong.

Methods: Narrative review and critical appraisal were done on several papers related to the alcoholic tax describing both Hong Kong situation and foreign countries. The keywords to sort out the papers were “Tax” and “Alcohol”; “Tax” or “Alcohol”; “Taxation” and “Alcohol” and “Taxation” or “Alcohol”. Nine studies were selected and used for this study. Formats of the nine studies ranged from cross-sectional studies to time-series intervention analysis. The nine studies had complementary explanations and associations of each other. This study attempted to synthesize the findings of the nine studies and give relevant review and criticism in the context of the Hong Kong society.

Conclusions: Globalization and regional economic integration, say the establishment of European Union (EU), and other economic interests, such as, the protectionism of wine-grape farmers, had huge influence on the alcohol control policy. The same case was found in Hong Kong. On a contrary to the public health concern, high taxation, which was proven to the most cost-effective measures on alcohol control, was surrendered to economic interests. To combat the influential industry lobby, it was necessary to implement a range of alcohol control interventions including those which were regarded as less cost-effective, say, education and promotion.