KUALA LUMPUR – The Customs Department had issued two circulars in June and August to all its division heads, state-level directors and various local authorities, including Kuala Lumpur City Hall (DBKL), to enforce liquor licences in all restaurants and coffee shops.
The two documents sighted by The Vibes stated that the department had revoked its directive dated August 24, 1993, which instructed postponement of the enforcement of licensing on the sales of liquor besides beer and stout in coffee shops and restaurants.
“Therefore, the retail sale of liquor, whether in restaurants or coffee shops, including Malaysia-themed coffee shops, needs to be licensed,” the circular read.
The first circular issued to customs top brass explained the legal background and laws related to the original postponement of licensing for alcoholic beverages in restaurants and coffee shops.
The circular stated that the department had referred the matter to the Finance Ministry due to confusion faced by its enforcement officers regarding the sale of alcoholic beverages, seeing as there are conflicting laws on whether licensing is required.
After receiving clarification from the Finance Ministry and consulting the department’s legal adviser, the government agency then decided to revoke the instructions from its headquarters dated August 24, 1993, which had postponed the enforcement of licensing on the sale of beer/stout in restaurants and coffee shops, including Malaysia-themed coffee shops.
The second circular sighted by The Vibes was issued in August to city and town councils in the Klang Valley, among others.
It had noted that the licensing requirement falls under the Excise Act 1976 and Excise Regulations 1977.
‘Unnecessary burden’
Commenting on the issue, which was first revealed by DAP secretary-general Lim Guan Eng in a statement yesterday, former deputy international trade and industry minister Ong Kian Ming said the licence requirement has put unnecessary burden on coffee shop and restaurant owners, especially in smaller cities and townships.
He also noted that the current timing to impose the new licence requirement is politically charged.
“It is of course a mistake in my opinion because you are putting financial burden on coffee shop owners, who have already been hit badly by the (Covid-19) pandemic,” the DAP assistant political education director said.
This is the worst time to revoke the postponement on the collection of excise duties from coffeeshop owners.”
‘Extremist policies’
In his statement yesterday, Bagan MP Lim had also accused the federal government of adopting the “extremist” policies of PAS nationwide.
Lim noted the ruling included Sabah and Sarawak and requires ordinary coffee shops selling beer to apply for alcohol licences.
Referring to a China Press report, Lim pointed out a separate policy in Perlis limiting coffee shops and restaurants to selling only four cartons of beer daily.
Lim argued that the issue does not only concern an additional financing burden via extra licensing costs, but is also about deliberately imposing unnecessary restrictions and interfering in the customary lifestyle and business practices of non-Muslims.
The former finance minister questioned whether the decision had been influenced by Islamist party PAS, which is currently part of the government.
On the timing of the implementation, Ong said he believes the government is looking to gain support from certain segments of society.
“My best guess is that the government feels it can gain political mileage out of this issue to show its ‘Islamic’ credentials by going after the sales of beer at coffee shops,” Ong said.
I believe that the practices are discriminatory in terms of going after the outlets that are selling beer, which of course only affects non-Muslim shop owners and customers.”
Yesterday, Petaling Jaya Coffeeshop Association president Keu Kok Meng said the businesses only came to know about the requirement for the new licence three weeks ago, just a month and a half before the ruling is supposed to come into force on January 1.
Keu said his association was called in for a briefing by the Customs Department last month to inform it of the decision.
He said the timing of the implementation is especially odd – considering businesses are only beginning to recover from the Covid-19 pandemic – and warned that the new licensing policy could force many to cease operations.
Keu also said the licence could cost businesses between RM840 and RM1,320 annually, depending on operation hours. – The Vibes, December 6, 2021
