[UPDATED] MoF deflects beer licence issue in Dewan Rakyat

KUALA LUMPUR – The Finance Ministry has snubbed questions on the Customs Department’s decision to enforce new licences on restaurants and coffee shops that sell beer.

During Question Time in Dewan Rakyat today, Nga Kor Ming (Teluk Intan-PH) asked the ministry for a reason behind the decision to enforce the RM1,340 licence to sell beer and stout when restaurants and coffee shops are struggling to recover from an economic slowdown post-pandemic.

“We received a complaint from the Confederation of Coffee Shops Malaysia, where the Customs Department wants to implement a new policy based on old regulations, which is the excise regulation that has existed since 1977 but was never implemented.

“Starting next month, the Customs Department wants to implement an old regulation, using a new policy, on all coffee shops selling beer where they must apply for a licence. So, how many licences must a new coffee shop apply and pay for?

One licence costs RM1,340 and the cost will be passed to the consumer. This will contribute even more to the rise in prices. Why is the government burdening the rakyat with extra bureaucracy that will adversely impact the public?”

In his reply to the supplementary question, Deputy Finance Minister I Mohd Shahar Abdullah (Paya Besar-BN) appeared to deflect and told the lower House that Putrajaya’s decision is “in line with international standards”.

“This is not just a practice in Malaysia but also done by other countries. We are following the World Health Organisation (WHO) convention.

“Even though we want to increase the government’s revenue, we must also follow a system that will control the price of cigarettes and hard liquor,” said Shahar, who was seen stumbling over his answer a few times.

The Vibes had reported that 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.

In Penang this morning, DAP secretary-general and Bagan MP Lim Guan Eng had called upon local councils not to cooperate with the federal circular on beer licensing enforcement on all coffee shops and restaurants, until details from the Finance Ministry have been released.

In the press conference at the state’s DAP headquarters, he lambasted the circular as “unwarranted and unjustified” as it will affect the lifestyles of non-Muslims.

“This limitation will affect the rights of non-Muslims and our lifestyle. There have been no problems since before gaining independence.

“Why further divide Malaysians by enforcing this licensing requirement, which will also burden the business community during the pandemic?” – The Vibes, December 6, 2021