The federal government is responsible for the 100 percent hike in liquor operating licenses nationwide, said state cabinet member on local government Chow Kon Yeow.

Chow said the Finance Ministry via the Customs Department has directed the Penang government to double the fee for shops, restaurants and entertainment outlets which sells, import and export liquor and tobacco.

He added that the directive is based on the Excise (Licensing Boards) (Amendment) Regulations 2014 gazetted by the federal government on June 20 this year.

The hike was effective July 1 and applies to 703 premises related to liquor sale in Penang (island and mainland).

"The increase in liquor license fee comes after a long time, 40 years, this is the first review," Chow ( left ) said at a press conference.

"Although the directive comes from the Finance Ministry, the revenue collected goes directly to the state government coffers," he added.

"The local councils on Penang island (MPPP) and Seberang Perai (MPSP) are merely the fee collectors," he stressed.

Chow said the state is expected to collect RM3 million next year from this exercise.

He was responding to businessmen involved in the trade which urged the state to clarify the 100 percent fee hike in operating licenses for liquor sale.

"So far, we were only asked to clarify but did not receive any complaints over the matter.

"It is a decision by the finance ministry which is under the federal government," Chow said.

The fees now for wholesale dealer's licenses are RM90 per month, RM70 for retail shops, RM110-RM220 for public houses (restaurants or entertainment outlets) and RM60 for temporary licenses to RM70 and RM110 for beer house licenses.

Temporary extension of opening hours are now RM60 for public houses and RM30 for beer houses.