Siphelele Dludla|Published
The Gauteng Liquor Traders Association (GLTA) has rejected proposed increases in liquor licensing fees by the Gauteng Liquor Board, warning that the move would disproportionately hurt township-based micro and small businesses already battling what it describes as a “broken and unworkable” regulatory system.
The association, which represents thousands of liquor traders across Gauteng, on Monday said the proposed fee hikes are both unaffordable and unjustifiable given ongoing structural challenges within the licensing regime.
“These increases are being pushed onto traders operating in an environment where the system itself is failing them,” said GLTA spokesperson Jongikhaya Kraai.
“You cannot raise fees on small businesses when you haven’t even fixed the basics, from a backlog of almost two years in licence approvals to red tape that makes it nearly impossible to comply.”
In its formal submission to the Gauteng Department of Economic Development, the GLTA outlined what it called “deep-rooted inefficiencies” in the licensing system.
These include approval delays stretching up to 12 months, declining licence approval rates in township areas, and confusion surrounding the conversion of long-standing shebeen permits into formal licences.
Last month, the Gauteng Liquor Board announced that it was unable to issue official annual renewal certificates due to ongoing supplier challenges. However, the board over the weekend announced that the 2026 renewal licence certificates have arrived earlier than anticipated and were available for collection from Monday.
According to the association, traders are already paying up to R6,000 annually in licensing costs, while facing penalties, excessive renewal requirements and inconsistent enforcement. It also flagged a rise in fraudulent licences circulating in the market, further complicating compliance efforts for legitimate operators.
GLTA argues that zoning and land-use regulations designed for formal urban areas are often rigidly applied in townships, where historical spatial planning and informal property arrangements make strict compliance difficult.
“Small township businesses are being drowned by paperwork, delays and inflexible rules that make it impossible to succeed, and then they are told to pay more for the privilege,” Kraai said.
“This is not just a licensing issue, it’s a failure to enable growth, formalisation and job creation in the communities that need it most, and where the country’s growth and jobs present a material opportunity.”
Complains over liqour licensing are a wider concern amongst the proposed amendments to the Liquor Act, 59 of 2003, which shifts the administrative burden and cost of liquor licence applications from the Liquor Authority, municipalities and the police to applicants.
Whereas under current policy the public participation process is conducted by these entities, in future the applicant will carry the responsibility for contacting the municipality, neighbours, community-based organisations etc., and for the cost of advertisements in the newspapers.
The association warned that higher licensing fees could widen the gap between formal and informal traders, particularly as large corporate supermarkets continue expanding into township markets.
GLTA maintained that pushing up costs without addressing systemic flaws risks driving more operators into informality, undermining both regulatory oversight and provincial revenue collection.
“We are not opposed to contributing fairly to the provincial fiscus, but that contribution must be based on a system that works,” Kraai said.
“Right now, the system is broken. And until it is fixed, fee hikes will only drive more businesses into informality and further weaken compliance.”
Rather than blanket fee increases, GLTA has proposed a series of reforms aimed at improving compliance and boosting revenue without crippling small enterprises.
These include introducing a sliding-scale fee model based on business size and turnover, issuing temporary trading permits for survivalist entrepreneurs, fast-tracking outstanding shebeen licence applications, and implementing the long-standing recommendations of the Shebeen Task Team established in 2022.
The association argues that formalising more traders through a supportive, streamlined system would ultimately broaden the tax base and stabilise the sector.
Industry analysis shows that the alcohol value chain contributes an estimated 3–4% to South Africa’s GDP, with Gauteng accounting for a significant share due to its concentration of retail, wholesale and entertainment activity.
GLTA said township liquor traders play a crucial role in that ecosystem, supporting families, sustaining livelihoods and generating employment in areas where job opportunities are scarce.
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