About R8-billion was lost during the hard lockdown and revenue is being slashed further.
Phillimon Mojale, 63, is grateful to be alive after contracting Covid-19 last month. The owner of Mojale Place, a tavern in Ivory Park township, north of Johannesburg, was rushed to hospital for what he thought were issues related to his heart condition.
Mojale suspects he contracted Covid-19 soon after traders were permitted to sell alcohol under level 3 of the government’s risk adjusted strategy. Many of his customers let their guard down once they had “one or two drinks in their system”, he says. In a letter to President Cyril Ramaphosa, tavern owners said alcohol sales should be allowed “to save a million livelihoods”.
Before sale of alcohol was banned in stages 5 and 4 of the lockdown, Mojale employed 12 people. The number of employees was reduced to three when the ban was lifted. Now he has had to let go of all employees because he can’t pay them. The letter adds that “for every month that alcohol is suspended, our government loses approximately R4.2-billion in excise duty and VAT ”.
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