Liquor traders in a fizz over fees

Kathorus Liquor Traders Association has raised its dissatisfaction with the new liquor licence trading fees proposed by the Gauteng Provincial Government.

The proposed trading licence fees are listed in the latest issue of the Provincial Gazette Extraordinary dated July 28, 2016. Members of the association have already shot down the fees, which have in some instances trebled since fees were last raised by the Liquor Board in 2003.

According to the chairperson of the Boksburg, Vosloorus Food and Beverage Association (BVFBA), Amos Mnguni, the proposed increase follows a workshop that was arranged by the Gauteng Provincial Government at the Birchwood Hotel in Boksburg on July 5. The purpose of the workshop was to educate SAPS and EMPD liquor officers about the differences between fraudulent and genuine liquor licences.

“This included all clusters officers from around Gauteng and we were invited as a liquor association. It was at this gathering that the Board raised the issue of inconsistency in the collection of trading licence revenue from traders in Gauteng,” explained Mnguni, who added that it was at that meeting that the Board queried the low revenue collected despite there being more liquor outlets and traders operating in the province.

The Gazetted Notice which was signed by the (MPL) Member of the Executive Council responsible for Economic Development, Environment and Agriculture and Rural Development, intends to amend the regulation to the Gauteng Liquor Act of No 2 of 2003 and invites interested persons and parties concerned to submit written comments.

However, several uncertain members who had gathered at the BVFBA offices in Vosloorus on Friday, August 1, voiced their disappointment in the proposed high trading licence fees indicated in the gazetted proposals by the minister.

“Our view is that the proposed fees will be way out of the means of the ordinary township trader. And if the recommendations are passed, this will mean a slow death of the small business liquor industry in the townships. Only the very prosperous will survive because of their large clientele volumes,” lamented Martha Morley, owner of the Bafokeng Liquor Store in Vosloorus.

Her response to Minister Lebogang Maile’s proposed prices was a more reasonable 10% increase.

“We are not against a review of the trading licence fees, but we were taken aback by the high recommended increases which will only mean a gradual decline in the liquor business in the townships,” said Morley.

Burt Sekete, another member of the BVFBA, also decried the minister’s proposed licence increase. “I am dumbfounded by the dramatic difference between what we are presently paying now and what is proposed by the Minister in the gazette,” said Sekete, who also suggested the proposed increase should have been about 10%.

The new proposed liquor trading licence prices have been listed as follows;

1: Hotel Liquor Licence: R3 500 – R6 000

2: Restaurant Liquor Licence: R3 000 – R4 500

3: Theatre Liquor Licence: R3 000 – R6 000

4: Club Liquor Licence: R3 000 – R6 000

5: Night Club Liquor Licence: R5 000 – R10 000

6: Gaming Premises Licence: R5 000 – R10 000

7: Sports Ground Liquor Licence: R2 500 – R5 000

8: Pub Liquor Licence: R3 000 – R5 000

9; Dance Hall Liquor Licence: R5 000 – R7 000

10: Tavern Liquor Licence: R2 500 – R5 000

11: Pool Club Liquor Licence: R3 000 – R6 000

12; Liquor Store Licence: R3 000 – R6 000

13; Grocery Wine Licence: R1 500 – R2 500

14 Micro Manufacturer’s Licence: R5 000 – R10 000

15 Sorghum Beer Licence: R2 000 – R3 000

Mnguni described the proposed fee increases as “unfortunate” for the small liquor traders in the township. “There’s no doubt, this will mean and slow and sad death for all forms of social entertainment in the country’s townships,” said Mnguni, who has invited local traders to participate in the discussions.

No comments could be obtained from Minister Maile’s office at the time of going to press.