Thursday, 27 February 2014

Liquor Tax - Does the Finance Minister like Brandy, Wine or Beer?

Liquor Tax -  We thought our readers and members might enjoy a more entertaining side to the liquor statistics contained in the 2014 budget, given its somewhat depressing nature.   We were suprised to find that the Finance Minister seems to prefer beer to wine and brandy and we have the statistics to prove it!

Table A shows that beer has enjoyed the smallest increase in excise duty, compared to brandy and wine, since 1994.

Table B shows that the excise duty as a percentage of the retail price of beer has actually decreased since 1994!    Compare this to wine and brandy, which has experienced an increase.

Whatever you enjoy, one thing remains certain - you are going to pay more for you favourite drink - and the increase won't necessarily be going to your supplier!

Tabel A : Increase in Price and Excise Duty (source : Media24)

Tabel B : "Sin" tax as a percentage of the retail product price

Wednesday, 19 February 2014

Liquor Licences for Cinemas?

Liquor Licence -   We wondered whether we would get any reaction from our members and Blog readers to this question, which has been asked more frequently during the past year.   We did some research on the position abroad, specifically in the United States,  where it is becoming increasingly common for movie theaters to sell liquor.   We came across a cinema in the state of Minnesota, which had recently been awarded an expanded liquor licence, allowing moviegoers to imbibe while watching the big screen.

This theater was granted a liquor licence in November 2014,  restricting liquor sales and consumption to a proposed restaurant/lounge area.   They proceeded to request their Liquor Board to expand the licence conditions, which was subsequently approved, subject to two further licence conditions - only one drink may be sold to a person at a time and a representative from the theater is to report back to the Liquor Board within six months.

The Liquor Board expressed concern about, underage drinking and oversight, but these fears were allayed by the assurance that staff members were trained extensively and that the theatre were serious about compliance.   

We doubt whether the large South African cinema companies will apply for liquor licences for their premises. However,  it may be an option for independent cinema businesses and theatres, who could do with additional income and attendance, given the current economic climate.   We have no doubt that it would be appreciated by patrons!
(Article by LiquorWise)

Mpumalanga Liquor Board approves fewer liquor licences

Liquor Law -  The Mpumalanga Liquor Board announced that it had approved 71 out of 758 applications in the past financial year.   This amounted to an approval rate of less than 10%.   The majority of applications were refused due to the proposed liquor premises being situated too close to schools and churches.   Although it was reported that 657 inspections of liquor licensed premises had been conducted, no mention was made of action taken against those not complying to the Liquor Act.   

The  MEC, Pinky Phosa, hinted at the establishment of the Mpumalanga Liquor Authority in terms of the Mpumalanga Liquor Licensing Act of 2006.   However,  this has been mentioned before and no action has, as yet,  been evident.
(Article by Spotongmag, edited by LiquorWise)

Heavy Fines for Ignoring Liquor Trading Hours

Liquor Law – The Western Cape Liquor Authority has issued fines of R50 000 (Springbok Pub – Stellenbosch) and R40 000 (Saldanha Liquors) for trading outside of legal liquor trading hours.   In addition to fining transgressors, a number of liquor traders, from Observatory to George, were closed down in the last year.  This is the result of the Liquor Authority stepping up its campaign against liquor traders who disregard the basic conditions of their liquor licences.

The Western Cape Liquor Authority confirmed that liquor traders with a “blatant disregard” for the Western Cape Liquor Act, will be prosecuted.
(Article by the Argus, edited by LiquorWise)