Gauteng’s township liquor traders are warning that proposed increases in liquor licensing fees could push more small outlets out of the formal economy just as government tightens the screws on alcohol.

Traders Say the System is “Broken”

The Gauteng Liquor Traders Association (GLTA) has rejected proposed licensing fee hikes from the Gauteng Liquor Board, saying the increases are “unaffordable and unjustifiable” for micro and small businesses in townships.

GLTA spokesperson Jongikhaya Kraai said traders are being asked to pay more while the basics are not working. He pointed to a backlog of almost two years in licence approvals and red tape that makes compliance difficult.

In its submission to the Gauteng Department of Economic Development, the GLTA listed approval delays of up to 12 months, declining approval rates in township areas and ongoing confusion over converting long-standing shebeen permits into formal licences.

Costs, Fraud and Renewal Chaos

The association said traders already pay up to R6,000 a year in licensing costs and still face penalties, heavy renewal requirements and inconsistent enforcement. It also warned about fraudulent licences circulating in the market, which it says makes compliance even harder for legitimate operators.

The GLTA also noted that the Gauteng Liquor Board recently said it could not issue annual renewal certificates due to supplier challenges, though it later announced that 2026 renewal licence certificates had arrived early and would be available for collection from Monday.

Alcohol Taxes and Tougher Rules are Coming

The fee fight lands in a bigger national push to curb alcohol harm. President Cyril Ramaphosa has flagged measures like limiting liquor outlet density, restricting trading hours, minimum unit pricing and raising excise duties.

On the tax front, the Rural Health Advocacy Project has backed proposals to increase alcohol tax, saying higher prices can reduce demand and support wider social benefits.

Business groups are bracing for more pressure ahead of the 2026 Budget on 25 February, with the Beer Association warning that above-inflation excise hikes squeeze margins and can shift demand to unregulated and unsafe alcohol.

GLTA’s Alternative Plan

Instead of blanket fee hikes, the GLTA wants reforms like a sliding-scale fee model based on turnover, temporary trading permits for survivalist entrepreneurs and fast-tracking shebeen licence applications, arguing that easier formalisation would broaden the tax base without crushing township businesses.