Liquor traders slam new fees

The president of the Gauteng Liquor Traders Association, (GLTA), Linda Madida, is disappointed in what he says is the unilateral decision by the Gauteng Development Board to proceed with the implementation of the new liquor licence fee increases, which came into effect on December 2.

The GLTA represents scores of affiliated local tavern operators and liquor traders in the Kathorus townships of Katlehong, Thokoza and Vosloorus.

Let down

Speaking to Kathorus MAIL about the new liquor licence tariffs, Madida was also disappointed in what he described as the “hundreds of GLTA affiliates” whom he said feel “let down” by the Department of Economic Development under Minister Collin Maile.

“GLTA members feel they were abandoned by the minister at a crucial period of the discussion. They also feel that their views and submissions concerning the new licensing fees were totally disregarded by the authorities,” said Madida

“In fact, we were still awaiting responses from the authorities to our submissions to the proposed bill when, on December 2, we received information that the bill had been passed and was now in force. None of our collective submissions to the Liquor Board had been considered or responded to and now we are stuck with a bill that will, sooner or later, push many of our members out of business in their own residential areas,” Madida explained. He also labelled the new bill as “the beginning of the end of the liquor business in the hands of blacks in the townships”.

Justified

According to Madida, the new tariff increases would be beyond the means of the ordinary tavern operator in the township. The new amount a tavern applicant is expected to pay for a liquor licence is enough to cripple many aspiring young entrepreneurs who wish to venture into the liquor trade in the townships in future.

In response to this, the Liquor Board has justified the increases by saying that the old liquor licensing fees have remained unchanged for more than a decade, and that the new increases are in fact comparatively equivalent to unimposed fee increases over the same time frame.

But hundreds of Kathorus liquor traders who are affiliated to the GLTA have slammed the increase as “inconsiderate” and “unfair” towards their businesses, citing that the high licensing fees would make it impossible for many of their colleagues to continue trading. “We are not in the million-Rand-a-year income bracket because of our low income grade,” explained Bongane Mabuza, a trader based in Ncala Section in Katlehong.

Barely survive

Mabuza also voiced his disagreement with the new bill. “How can they do this to us? We were not given sufficient time to consult with the authorities regarding our submissions.” He argued that GLTA members were likely to suffer now that the authorities have gone ahead with the implementation of the bill without consultations.

“We are not in the million-Rand-a-year income bracket and many of us barely survive on what we make from selling booze,” Mabuza explained.

Martin Hlongwa’s popular Jazz Lounge, in Dawn Park, is one of the hundreds of liquor outlets that will be affected by the new liquor licensing bill. Hlongwa lashed out at the Gauteng Local Government for failing to listen to local traders’ grievances about the new fees.

The new liquor licence fee increases are as follows:

· Hotel Liquor Licence: R3 500 to R6 000

· Restaurant Liquor Licence: R3 000 to R4 500

· Theatre Liquor Licence: R3 000 to R6 000

· Club Liquor Licence: R3 000 to R6 000

· Night Club Liquor Licence: R5 000 to R10 000

· Gaming Premises Licence: R5 000 to R10 000

· Sports Ground Licence: R2 500 to R5 000

· Pub Liquor Licence: R3 500 to R5 000

· Dance Hall Liquor Licence: R5 000 to R7 000

· Tavern Liquor Licence: R2 500 to R5 000

· Pool Club Liquor Licence: R3 000 to R6 000

· Liquor Store Licence: R3 000 to R6 000

· Grocery Store Wine Licence: R1 500 to R2 500

· Micro Manufacturer: R5 000 to R10 000

· Sorghum Beer Licence: R2 000 to R3 000