Close to 35,000 tavern owners affected by alcohol ban

The National Liquor Traders Council (NLTC) has announced the establishment of a Tavern Relief Programme that seeks to raise R100 million to support 34,500 tavern owners by providing food parcels and other necessary supplies.
NLTC convener Lucky Ntimane said this programme will support these tavern owners for a two- to three-month period by identifying taverns in need and responding accordingly. The council also seeks a government support grant for its taverns via a once-off payment of R20,000 each, which will require further support of R690 million.
“If the government acts now and lifts the ban, we can begin to recover and prevent this catastrophe. The unfortunate decision by President Cyril Ramaphosa to suspend the sale of alcohol has shattered the entire alcohol industry and its extensive value chain. The fact that the government failed to consult with the industry before the ban added salt to the already gaping wound,” said Ntimane. He added that, “Government continues to treat the industry with disdain and with no alternative for support being entertained or even acknowledged. This attitude is the hallmark of an uncaring government, which small business owners operating in the townships have been subjected to for a long time”.

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NLTC chairperson Winston Hector echoed that, “The cornerstone of the township economy is underpinned by two major industries: taxis and liquor. With the liquor industry effectively being shut down, the township economy is on its knees, with no sign of growth expected in the next few years. The worrisome trend is that black businesses in the township market continue to bear the brunt of an uncaring government not keen to support their growth, let alone their existence.”
Meanwhile, the liquor industry (NLTC, SALBA, BASA, Vinpro and manufacturers) released a joint statement stating that the renewed prohibition of alcohol sales with immediate effect has resulted in the industry applying for a deferment of the payment of over R5 billion in excise duties for July and August. Liquor industry spokesperson Sibani Mngadi said, “This means that our industry has a liability to pay excise tax on end products that are in warehouses and cannot be sold as a result of the prohibition of sales with immediate effect.”

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