Finance Minister Tengku Zafrul bin Tengku Abdul Aziz’s reply in Parliament to Damansara MP Tony Pua that the Customs Department’s directive was not revoked as claimed by Transport Minister Wee Ka Siong, but will be updated to allow the state government’s respective State Licensing Authority to decide whether to impose licensing fees on the sale of beer by coffee shops and restaurants. Wee had implied that the matter was resolved, after claiming that the Customs Department directive that coffee shops and restaurants must obtain an alcohol license costing up to RM1,300 to sell beer was revoked.
The Customs department had earlier issued circulars reversing its directive dated Aug 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 Customs Department concluded that the retail sale of beer, whether in restaurants or coffee shops, including Malaysia-themed coffee shops, need to be licensed.
The Finance Ministry should not hand over the power to decide to the respective state government but continue to postpone the enforcement of licensing of beer in coffee shops and restaurants. In other words, the postponement should be reinstated and not reversed. This power is under the purview of the Finance Ministry, including the penalty for selling liquor without a license can be fined RM50,000 under the 1976 Excise Act, and not under state laws.
By not revoking the circulars by the Customs Department as claimed by Wee but letting the respective State Licensing Authority to decide whether to obtain a license to sell beer is worse off than the previous position where Customs Department and the Finance Ministry did not recommend the requirement of a license. The coffee shops and restaurant associations had previously expressed fears that 60% out of 15,000 restaurants and 80% out of 20,000 coffee shops nation-wide may cease selling beer if the new regulations come into force.
This would reduce the avenue for many non-Muslims to enjoy their beer in legally licensed shops as normal because operators may not think it is worth paying between RM840 and RM1,320 for a license when they can hardly earn sufficient profits from selling beer. This interferes in the freedom and affects the customary lifestyle and normal business practices of non-Muslims that has been in force since Merdeka without any public complaints.
By letting state governments decide, there will be some state governments influenced by PAS extremist policies that will implement these new regulations on non-Muslim coffee shops and restaurants which they had no powers previously. So far only the PH state governments have stated that they will not disrupt the current practice and therefore not require licensing of the sale of beer in restaurants and coffee shops. Who will bear responsibility for the additional costs and inconvenience faced by coffee shops and restaurants should some state governments impose the licensing requirement?