Macao “Tax -free alcohol” Policy to Threaten Mainland Market

Maocao government may follow Hong kong to abolish the imported alcohol duty. What influence will the tax free policy work to China mainland wine market?

Imported wine sales will go down in mainland

Imported wine distributors and dealers in Guangzhou and Shenzhen said that sales of foreign wines are affected dramatically, especially expensive wines from famous Chateaus, after Hong Kong scrapped the tax on wine.

Mr. Liu, sales manager of Guangzhou Ocheers corp., told journalists of “China Wine News”that they have had to adjust the price of many imported wines in store lower to keep more customers from purchasing wines in Hong Kong, which leads to the profit slump sharply. Ocheers will face a new challenge with the tax free policy employed in Macao in the future.

Cheers Wine Cellars in Shenzhen also experiences the same difficulties.

Cheers Wine Cellars has many chain stores in Hong Kong and mainland. The spokesman of Cellars said that they have to change promotion strategies after Hong Kong abolished the alcohol tax . The stores in mainland now are dealing with medium priced wines, the premium wines offered in Hong Kong stors. However, after Macao pass the“tax free”policy, wine market in mainland will face more serious challenge.

Bid up the price of imported wines

A lot of wine merchants buy many imported wines that are unmaturely, which bid up the price of these wines higher. Insiders predicted that such phenomena will be serious after Macao abolish wine tax.

Wine smuggling crimes will go up

“Tax free alcohol” policy will increase wine smuggling- related crimes from Hong Kong and Macao into China mainland.