Gauteng liquor traders slam licence hikes as unaffordable, unfair

Gauteng tavern and shebeen owners are hitting out at planned licence increases, which they say are unaffordable and risk pushing them underground.

Represented by the Gauteng Liquor Traders Association (GLTA), traders say the increases are unjustifiable and could cripple already struggling businesses.

GLTA spokesperson Jongikhaya Kraai explains why the association is against the hike.

"One: you've got your tavern license holder who is paying anything from R4,500 to R6,000. Two: these high prices are only in Gauteng."

Giving trans-provincial Hammanskraal as an example, Kraai says GLTA members are aggrieved that traders in other parts of the region are paying considerably less for licences.

"Our members in Hammanskraal are saying people in North West are paying as little as R500, people in Mpumalanga are also paying in the hundreds, but they in Gauteng are paying R5,000 or R6,000. This is ridiculous."

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A third issue, says Kraai, is the failure of the Gauteng Liquor Board in converting shebeen permits into full licences.

Shebeen permits were meant as a transitional measure to bring informal taverns into the regulated economy.

"We are saying, you can't add any more burden to the Tavern License holder while the Shebeen Permit Holder has not been paying since 2003 or 2007."

Traders also warn that higher fees may push more owners to operate illegally.

Meanwhile, with the National Budget approaching this week and the possibility of higher alcohol 'sin taxes', Kraai says a balance must be struck between raising revenue and protecting livelihoods.

His message to the GLB is clear.

"Just do what the court asked you to do. Give them the shebeen licenses and allow them to pay their renewal fees; you will reach your target and beyond."

To listen to Kraai in conversation with Africa Melane, use the audio player below: