The alcohol industry lobby and Hong Kong’s zero wine and beer tax policy

BMC Public Health

Tai-Hing Lam¹  Sungwon Yoon¹ 

[1] Department of Community Medicine & School of Public Health, Li Ka Shing Faculty of Medicine, The University of Hong Kong, 21 Sassoon Road, Pokfulam, Hong Kong, SAR, China

关键词: Political tactics;    Hong Kong;    Public health policy;    Alcohol industry;    Alcohol tax;   

Others  :  1163177
DOI  :  10.1186/1471-2458-12-717

 received in 2012-03-15, accepted in 2012-08-10,  发布年份 2012

【 摘 要 】

Background

Whereas taxation on alcohol is becoming an increasingly common practice in many countries as part of overall public health measures, the Hong Kong Special Administrative Region Government is bucking the trend and lowered its duties on wine and beer by 50 percent in 2007. In 2008, Hong Kong removed all duties on alcohol except for spirits. The aim of this paper is to examine the case of Hong Kong with its history of changes in alcohol taxation to explore the factors that have driven such an unprecedented policy evolution.

Methods

The research is based on an analysis of primary documents. Searches of official government documents, alcohol-related industry materials and other media reports on alcohol taxation for the period from 2000 to 2008 were systematically carried out using key terms such as “alcohol tax” and “alcohol industry”. Relevant documents (97) were indexed by date and topic to undertake a chronological and thematic analysis using Nvivo8 software.

Results

Our analysis demonstrates that whereas the city’s changing financial circumstances and the Hong Kong Special Administrative Region Government’s strong propensity towards economic liberalism had, in part, contributed to such dramatic transformation, the alcohol industry’s lobbying tactics and influence were clearly the main drivers of the policy decision. The alcohol industry’s lobbying tactics were two-fold. The first was to forge a coalition encompassing a range of catering and trade industries related to alcohol as well as industry-friendly lawmakers so that these like-minded actors could find common ground in pursuing changes to the taxation policy. The second was to deliberately promote a blend of ideas to garner support from the general public and to influence the perception of key policy makers.

Conclusions

Our findings suggest that the success of aggressive industry lobbying coupled with the absence of robust public health advocacy was the main driving force behind the unparalleled abolition of wine and beer duties in Hong Kong. Strong public health alliance and advocacy movement are needed to counteract the industry’s continuing aggressive lobby and promotion of alcoholic beverages.

【 授权许可】

   
2012 Yoon and Lam; licensee BioMed Central Ltd.

【 图 表 】

Figure 1 .

【 参考文献 】

• [1]General Assembly of the United Nations: United Nation High-Level Meeting on Non-Communicable Diseases. http://www.un.org/en/ga/president/65/issues/ncdiseases.shtml webcite
• [2]World Health Organisation: Global Status Report on Alcohol and Health. Geneva: World Health Organization; 2011.
• [3]World Health Organisation Western Pacific Regional Office: Addressing the Harmful Use of Alcohol: A Guide to Developing Effective Alcohol Regulation. Manila: World Health Organisation Western Pacific Regional Office; 2011.
• [4]Zeigler DW: The alcohol industry and trade agreements: a preliminary assessment. Addiction 2009, 104(suppl.1):13-26.
• [5]World Health Organisation: Global Strategy to Reduce the Harmful Use of Alcohol. Geneva: World Health Organisation; 2010:16.
• [6]Anderson P, Chisholm D, Fuhr DC: Effectiveness and cost-effectiveness of policies and programmes to reduce the harm caused by alcohol. Lancet 2009, 373:2234-2246.
• [7]Gustafsson NK: Alcohol Consumption in Southern Sweden after Major Decreases in Danish Spirits Taxes and Increases in Swedish Travellers’ Quotas. Eur Addict Res 2010, 16:152-161.
• [8]Wagenaar AC, Maldonado-Mollna MM, Wagenaar BH: Effects of Alcohol Tax Increases on Alcohol-Related Disease Mortality in Alaska: Time-Series Analyses from 1976 to 2004. Am J Public Health 2009, 99(8):1464-1470.
• [9]Randy WE, Lawrence B, Ferguson A, Naimi TS, Brewer RD, Chattopadhyay SK, Toomey TL, Fielding JE, The Task Force on Community Preventive Services: The effectiveness of tax policy interventions for reducing excessive alcohol consumption and related harms. Am J Prev Med 2010, 28(2):217-229.
• [10]Bond L, Daube M, Chikritzhs T: Access to confidential alcohol industry documents: from Big Tobacco to Big Booze. Aust Med J 2009, 3:1-26.
• [11]International Centre for Alcohol Policies: Alcohol Taxation (ICAP Reports 18). Washington: International Centre for Alcohol Policies; 2006.
• [12]The Hong Kong Tourism Board: Hong Kong: the Fact. [http://www.gov.hk/en/about/abouthk/factsheets/docs/tourism.pdf webcite]
• [13]Williams V: Gavin Hewitt CMG- CEO, the Scotch Whisky Association. [http://www.womguide.com/hot-features/meet-your-maker/gavin-hewitt-cmg-ceo-scotch-whisky-association webcite]
• [14]Department of Health: Action Plan to Reduce Alcohol-related Harm in Hong Kong. Hong Kong: Hong Kong Department of Health; 2011.
• [15]Centre for Health Protection: Behavioural Risk Factor Survey. Hong Kong: Hong Kong Department of Health; 2012.
• [16]Centre for Health Protection: Behavioural Risk Factor Survey. Hong Kong: Hong Kong Department of Health; 2004.
• [17]The Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China: The Basic Law of Hong Kong. [http://www.basiclaw.gov.hk/en/basiclawtext/ webcite]
• [18]Loh C, Civic Exchange: Functional Constituencies: A Unique Feature of Hong Kong Legislative Council. Hong Kong: Hong Kong University Press; 2006.
• [19]Butler S: Obstacles to the implementation of an integrated National Alcohol Policy in Ireland: nannies, neo-liberals and joined-up government. Jnl Soc Pol 2009, 38(2):343-359.
• [20]Miller D, Harkins C: Corporate strategy, corporate capture: food and alcohol industry lobbying and public health. Cri Soc Pol 2010, 30(4):564-589.
• [21]Pitso JMN, Obot IS: Botswana alcohol policy and the presidential levy controversy. Addiction 2011, 106(5):898-905.
• [22]The Government of the Hong Kong Special Administrative Region: Budget Speech for 2001–02. http://www.budget.gov.hk/2001/english/efile.htm webcite
• [23]The Government of the Hong Kong Special Administrative Region: Budget Speech for 2002–03. [http://www.budget.gov.hk/2002/eframe2.htm webcite]
• [24]The Legislative Council of Hong Kong: Submission to the Bills Committee (Revenue Bill) from the Hong Kong Beer Industry Coalition. Paper No. CB(2)1570/00-01(01), 16 May 2001. http://www.legco.gov.hk/yr00-01/english/bc/bc65/papers/b1570e01.pdf webcite
• [25]Phillips H: Beer drinkers may trade down. Hongkong: South China Morning Post; 2001.
• [26]The Legislative Council of Hong Kong: Submission on the 2002 budget from the Hong Kong Wine Industry Coalition. Paper No. CB(1) 1661/01-02(04). http://www.legco.gov.hk/yr01-02/english/bc/bc08/papers/bc080507cb1-1661-4e.pdf webcite
• [27]The Legislative Council of Hong Kong: Report of the Bills Committee on Revenue Bill 2002 and Revenue (No.2) Bill 2002. Paper No. CB(1) 1959/01-02. http://www.legco.gov.hk/yr01-02/english/bc/bc08/reports/bc08cb1-1959-e.pdf webcite
• [28]The SoHo Association Limited: Letter to the Legislative Council, 13 May 2002. http://www.legco.gov.hk/yr01-02/english/bc/bc08/papers/bc080516cb1-1743-1e.pdf webcite
• [29]The Legislative Council of Hong Kong: Bill Committee on Revenue Bill 2002 and Revenue (No.2) Bill. Consul-General David O’Leary, Letter to Legislative Councillor, 16 May 2002. Hong Kong: The Legislative Council of Hong Kong; 2002.
• [30]The Hong Kong SAR Government: Hong Kong 2004: Economy. http://www.yearbook.gov.hk/2004/en/03_01.htm webcite
• [31]Li C: Hong Kong: US wine exports poised to set new record in wake of 50% tax cut. Hong Kong: USDA Foreign Agricultural Service; 2007.
• [32]The Hong Kong Food Drink & Grocery Association: The Hong Kong Food Drink & Grocery Association. http://www.fdga.org.hk/index.php webcite
• [33]Hong Kong Wine and Spirit Industry Coalition. http://www.fdga.org.hk/sub_committees.php?id=1 webcite
• [34]Schwartz S: Wine levy rise uncorks backlash industry leader decries ‘diabolical’ increase as SAR battles to become key Asian market. Hong Kong: South China Morning Post; 2002.
• [35]The Legislative Council of Hong Kong: Official record of proceedings. The Hong Kong Legislative Council of Hong Kong; 2002. http://www.legco.gov.hk/yr01-02/english/counmtg/hansard/cm0626ti-translate-e.pdf webcite
• [36]Legislative Council of Hong Kong: Press release: wine distribution hub, 02 June 2002. http://www.cedb.gov.hk/citb/ehtml/pdf/p_releases/press_e_2002_06_26_a.PDF webcite
• [37]Trade & Industry Bureau and the Trade Development Council: Hong Kong as a regional Wine Trading and distribution Centre: Prospects and opportunities. Hong Kong: Hong Kong Trade Development Council; 2000.
• [38]MOK KY, Choi YK: Government intends to reduce taxes to build wine hub, proposing three schemes to pave way for implementation next year. Hong Kong: Apple Daily; 2004.
• [39]Hong Kong Information Service Department: Views sought on alcohol tax. Hong Kong: Financial Services & the Treasury Bureau; 2004.
• [40]Treasury Branch, Financial Services and the Treasury Bureau, Government Secretariat: Duty on Alcoholic Beverages: Consultation Document. Hong Kong: Financial Services & the Treasury Bureau; 2004.
• [41]Parry S: Wine tax strangling city’s potential. Hong Kong: South China Morning Post; 2005.
• [42]Lam A: Wine dealers seek cut in alcohol taxes. Hong Kong: South China Morning Post; 2006.
• [43]But J: 80pc tax on wine too high, says lawmaker. Hong Kong: South China Morning Post; 2006.
• [44]But J: Coalition renews call for tax cuts on alcohol: hospitality industry says it would pass on savings to long-suffering consumers. Hong Kong: South China Morning Post; 2006.
• [45]APCO Worldwide: Hong Kong Wine & Spirit Industry Coalition. http://apcoworldwide.com/Content/client_success/client_success.aspx?pid=0&csid=254a1416-e90d-4e6b-a3e4-d81ab52fc5b4 webcite
• [46]Cheung LT: Alcohol industry points out Hong Kong’s alcohol tax tops in Asia. Hong Kong: Ming Pao; 2006.
• [47]Alcohol merchants promise immediate reduction in retail prices if tax reduced. Hong Kong: Hong Kong Economic Times; 2006.
• [48]Apple Daily Editorial Team: Big three political parties urge reduction of wine taxes. Hong Kong: Apple Daily; 2006.
• [49]Eng D: Catering industry calls for hefty cut in alcohol. Hong Kong: South China Morning Post; 2007.
• [50]Benitex M: Use taxes to fight alcohol abuse, says WHO official city urged to make duties part of its control policy. Hong Kong: South China Morning Post; 2006.
• [51]Santos H: Drink more grape juices. Hong Kong: South China Morning Post; 2006.
• [52]The Government of the Hong Kong Special Administrative Region: Budget Speech for 2007–08. http://www.info.gov.hk/gia/general/200702/28/P200702280141.htm webcite
• [53]Lee G: Alcohol tax cut welcome. Hong Kong: The Standard; 2007.
• [54]Connolly N, Eng D: Cheers for beer and wine but not for spirits. Hong Kong: South China Morning Post; 2007.
• [55]Civic Exchangehttp://www.civic-exchange.org/wp/ webcite
• [56]Civic Exchange: Submission made to the Legislative Council Environmental Affairs Panel: Review of Air Quality Objectives in Hong Kong. 2007. http://www.civic-exchange.org/eng/upload/files/200611_ReviewAirQuality.pdf webcite
• [57]Benitez M: Cut in alcohol duty raises student binge drinking concerns. South China Morning Post, Hong Kong; 2007.
• [58]Paine JR: Wine tax unwarranted (Fine Vintage). South China Morning Post; 2006.
• [59]World Trade Atlas. http://www.gtis.com/english/GTIS_WTA.html webcite
• [60]Li C: Hong Kong: US wine exports poised to set new record in wake of 50% tax cut. United States Department of Agriculture, Foreign Agricultural Service, Hong Kong; 2007:5.
• [61]The Legislative Council of Hong Kong: Official record of proceedings. Hong Kong: The Legislative Council of Hong Kong; 2007. http://www.legco.gov.hk/yr06-07/english/counmtg/hansard/cm0328-translate-e.pdf webcite
• [62]The Legislative Council of Hong Kong: Report of the Bills Committee on Revenue Bill 2007. LC Paper No. CB(1)1808/06-07. Hong Kong: The Legislative Council of Hong Kong; 2007.
• [63]Eng D: HK$ 4b wine hub opens if tax axed, trade says. South China Morning Post; 2008.
• [64]Lee HH: Wine merchants urge abolition of wine duties, hopes that Hong Kong will be a fine wine trading center and generate $5b of economic activity. Hong Kong: Ming Pao; 2008.
• [65]Kwong R: Hong Kong uncorks wine hope. London: Financial Times; 2008.
• [66]The Government of the Hong Kong Special Administrative Region: Budget Speech for 2008–09. http://www.budget.gov.hk/2008/eng/speech.html webcite
• [67]Food and Health Bureau: Amended Dutiable Commodities Ordinance Cap. 109. http://www.legislation.gov.hk/blis_pdf.nsf/4f0db701c6c25d4a4825755c00352e35/8817B4C4D79B7E01482575EE003B1DE2/$FILE/CAP_109_e_b5.pdf webcite
• [68]Hong Kong to become global wine hub: industry. Hong Kong: AFP News; 2008.
• [69]Li C: Hong Kong HRI Food Service Sector Annual 2009. Hong Kong: USDA Foreign Agricultural Service. GAIN Report; 2009:31.
• [70]Williams V: Gavin Hewitt – CEO of Scotch Whisky Association. 10 November 2010. http://www.womguide.com/hot-features/meet-your-maker/gavin-hewitt-cmg-ceo-scotch-whisky-association webcite
• [71]United States Department of Agriculture, Foreign Agricultural Service: Hong Kong Duties on Distilled Spirits. 2011. http://www.usfoods-hongkong.net/res/mns/00139/HK1126.pdf webcite
• [72]Kingdon J: Agenda, Alternatives and Public Policies. 2nd edition. New York: Harper Collins; 1995.
• [73]Sabatier P (Ed): Theories of the Policy Process. 2nd edition. Boulder, CO: Westview Press; 2007.
• [74]Barbor TF, Caetano R, Casswell S, Edwards G, Giesbrecht N, Graham K, Guibe J, Gruenewald P, Hill L, Holder H, Homel R, Osterberg E, Rehm J, Room R, Rossow I (Eds): Alcohol: No Ordinary Commodity: Research and Public Policy. Oxford: Oxford University Press; 2010.
• [75]The Legislative Council of Hong Kong: Dutiable Commodities Ordinance (Chapter 109) Amendment Bill 2008. The Legislative Council of Hong Kong; 2008. http://www.legco.gov.hk/yr07-08/english/hc/papers/hc0509ls-79-e.pdf webcite
• [76]Lam T, Chim D: Controlling alcohol related global health problems. Asia Pac J Public Health 2010, 22(Suppl):203-208.
• [77]Bakke Ø, Endal D: Alcohol policies out of context: drinks industry supplanting government role in alcohol policies in sub-Saharan Africa. Addiction 2010, 105(1):22-28.
• [78]Jahiel RI, Barbor TF: Industrial epidemics, public health advocacy and the alcohol industry: lessons from other fields. Addiction 2007, 102(9):1335-1339.