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The Western Cape provincial government and various business groups have raised questions about South Africa’s new alcohol-related lockdown restrictions.
In a national address on Monday night (December 14), President Cyril Ramaphosa announced the new measures as a means to curb the country’s Covid-19 cases during the holiday season.
The new restrictions establish that the sale of alcohol will only be allowed from 10:00 to 18:00 from Monday to Thursday at the points of sale. Wine farms may remain open and sell alcohol for off-site consumption based on their license hours on a few days.
In a letter addressing the new restrictions, the Consumer Goods Council of South Africa (CGCSA), the Liquor Traders Association of South Africa (LTASA) and other bodies in the alcohol industry recognized that the broader objective of the restrictions is control the further spread of Covid-19.
However, the groups said they are concerned about the government’s inconsistent approach to liquor dealers.
“Retailers and national grocery stores with liquor licenses feel that restrictions that only affect off-site liquor dealers are discriminatory and unfair, if not uncompetitive.
“Therefore, we call on the government to review the restrictions in January 2021 after the holiday season.”
Licensed liquor retailers are some of the largest employers in South Africa and a significant contributor to the taxation through taxes.
The latest restrictions, which came at a time when they were beginning to recover from previous hard lockdowns, could lead to job losses and financial losses, particularly for franchise operators and SMEs, most of which are owned by blacks.
“We are disappointed that despite the cooperation and strict adherence to security protocols by the industry, which has been so remarkably evident since the shutdown was first introduced in March 2020, that government, without consulting and provide a justification for its decision, restricted the sale of spirits for external consumption.
“Therefore, we are looking for the reasons that informed this decision, which we believe is not only economically irrational, but could also have the unintended consequence of benefiting those who practice the illicit trade in such products.
“This prevailed during previous closures when liquor sales were banned.”
Wine farms
Western Cape Prime Minister Alan Winde has also raised questions around the seemingly arbitrary rules around wine farms.
Winde said the province’s submissions to the government included making an exception for tastings and sales at wine estates over the weekend, as this is critical to the survival of the wine tourism economy, which employs thousands of people. in rural communities.
“We are concerned that regulations issued later now limit sales to only Saturdays,” he said.
“This does not make any sense, since there is no difference between a Saturday and a Sunday for this industry, and this limitation will undermine wine tourism, which is highly dependent on weekends.
“We will follow up immediately to understand why this regulatory change was introduced.”
Read: Ramaphosa Announces New Lockdown Restrictions For South Africa Including Beach Closures, Curfew And Alcohol Sales
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