Cheers to wine drinkers and wine distributors in Hong Kong as the Government plans to abolish duties on wine and beer.

The move was announced on Wednesday and, when confirmed, will do away with the present 40 per cent duty on wine (lowered from 80 per cent in the last budget).

Hong Kong's move is the more remarkable as in abolishing duties on wine, it hopes to reap in even more revenue from establishing itself as a world centre, alongside London and New York, in the trading of fine wine.

Hong Kong Financial Secretary John Tsang estimates that although the Government will lose about HK$560 million annually from abolishing wine duties, it may earn as much as HK$4 billion from it being a centre for the trading, storing and auction of fine wine.

Whatever the ulterior motivation, Hong Kongers and anyone who buy and drink wine in Hong Kong will benefit from lower prices (let's hope the high costs of doing business there and greedy hotels and restaurateurs do not undo the taxman's enlightened outlook).

On top of the move to abolish wine duties, consumers will benefit doubly as there is no sales, VAT or GST tax in Hong Kong.