Liquor licence fee hike hard-hitting: Labuan operators

Labuan: Karaoke and pub operators here have described the latest step by Labuan Corporation (LC) to "double" the cost of a liquor licence as "inconsiderate, exorbitant and badly timed."They said the move will threaten the survival of some operators who are already severely burdened with having to pay fees to various agencies.

The liquor licence fee at present is RM1,320 per year. LC has given notice that the rate will be revised to RM2,640 "without giving any valid reasons."

"It is very clear that due to the continuing slump in the price of oil, business in the entertainment industry has shrunk," said an operator who spoke on condition of anonymity.

"LC should be more realistic and not simply come up with a shocking decision without considering the market conditions.

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"LC should show some appreciation to the role nightlife played in keeping the tourism industry galvanised and breathing. It should not forget its own tagline of Labuan, a perfect destination for business and leisure," he added.

He said LC should also take into consideration that karaoke and pub operators were already paying about 10 forms of fees for permits and licences and this worked out to be more than RM10,000 per year and in some cases, RM20,000 (the larger ones).

Elaborating on this, the operator said the licences included trading licence (RM25), SSM (RM60), premises licence (RM1,100), business activity licence (RM2,920), liquor licence (RM2,642 - new rate), Finas (RM100), MACP (RM2,100), PPM (RM3,000) PPM 'Prism) (RM2,100) and RPM (RM840). The last few are for musical, lyrics and copyright items.

The charges are higher if the floor space of the pub is bigger and equipped with pool tables.

He noted that applying for the various licences was a headache with so much running around to do.

"The LC should come up with a plan to simplify procedures for business instead of thinking on how to further 'squeeze' the operators. If they keep on doing that, they would finally kill the goose that gives them the golden egg," the operator warned.

The operator also pointed out that Labuan did not have much tourism icons unlike Sabah and Sarawak.

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"Most of our icons are lifeless objects and nightlife gives a brush of colour to Labuan tourism. This should be recognised as Labuan is a free port and is expected to have a vibrant nightlife to cater to the oil and gas expatriates and others who seek rest and recreation on the island."

He hoped the Liquor Licence Committee, which is better aware of local economic issues, would veto the LC's decision, and if it was unable to do it, it should seek help from LC Chairman Datuk Rozman Isli.

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