The Gauteng Liquor Traders Association has rejected a proposal by the Gauteng Liquor Board to raise annual liquor license fees, which currently stand at up to R6 000. The group argues that the hikes would burden traders, particularly in townships. This stance comes ahead of the national budget speech that may include increases in sin taxes on alcohol.
The Gauteng Liquor Traders Association, representing thousands of liquor traders across the province, has firmly opposed the Gauteng Liquor Board's plan to increase license fees. Current fees are up to R6 000 per year, and the association warns that any rise would exacerbate financial pressures on businesses, especially those operating in townships where economic challenges are acute.
Association spokesperson Jongikhaya Kraai highlighted the potential ripple effects, stating, “If licensing fees increase, meaning the owners will increase their prices and already we are dealing with people that are jobless. So, we are just saying that, can we rather look at the option of letting shebeen permit owners pay their fees and ease the burden on tavern license holders.”
This rejection occurs as Finance Minister Enoch Godongwane prepares to deliver the National Budget Speech in the coming week. The speech is expected to address possible hikes in so-called sin taxes on alcohol and cigarettes, adding to concerns within the liquor industry about rising operational costs and their impact on consumers amid high unemployment rates.