'No alcohol' protest at over 20,000 bars in Maharashtra today over duty hikes

India Today

14-07-2025

Maharashtra's hospitality sector, comprising over 20,000 bar owners—including 8,000 in Mumbai and its suburbs and 11,500 hotel-based bars—has announced a statewide 'Bar Bandh' and 'No Alcohol' strike today in protest against the Devendra Fadnavis government's decision to hike excise duty.The unprecedented shutdown, supported by regional hotel associations in Palghar, Vasai, Pune, Nagpur, Aurangabad, Lonavala, Mahabaleshwar, and Nashik, marks one of the largest unified protests in Maharashtra's hospitality history. The protests will be led by the Hotel and Restaurant Association of Western India (HRAWI). advertisementLast week, the Maharashtra government decided to impose a 60% hike in excise duty, a 15% increase in annual FL3 license fees for FY26, and a 10% VAT on Indian-Made Foreign Liquor (IMFL) sold at FL3 outlets.
These measures, aimed at addressing financial strain from the Ladki Bahin scheme, have sparked outrage among bar owners, who warn of an existential threat to their businesses.The tax hikes have significantly increased liquor prices, hitting consumers hard. A 180-ml bottle of country liquor, previously priced at Rs 60– Rs 70, now costs Rs 80. Maharashtra-made liquor is now priced at Rs 148. Indian-made foreign liquor has risen from Rs 130 to Rs 205, and premium foreign liquor now costs Rs 360, up from Rs 210.'This triple blow will force many establishments to shut permanently. Our members are fighting for survival,' said Jimmy Shaw, President of HRAWI.Jimmy Shaw added that the hospitality sector, which supports over 20 lakh jobs and attracts 15 crore tourists annually, is a vital pillar of Maharashtra's economy. HRAWI warns that the current tax regime could lead to widespread bar closures, over 4 lakh job losses, a shift of tourists to more affordable neighbouring states, and a rise in unregulated alcohol consumption.Adding to the controversy, the state's plan to issue 328 new liquor sale licenses, primarily to companies rather than individual shopkeepers, has raised allegations of favouritism. Each liquor manufacturing company will reportedly receive eight licenses, and the committee overseeing foreign liquor production licenses is chaired by Deputy Chief Minister Ajit Pawar, whose son, Jay Pawar, is also a director at Capovitez, a liquor manufacturing company.This has fueled accusations of a conflict of interest, with critics like UBT Sena MP Sanjay Raut stating, 'Maharashtra is turning into a land of drunkards,' and social activist Anjali Damania arguing, 'Ajit Pawar should not head this committee.' However, Ajit Pawar has avoided commenting on the allegations.HRAWI has urged the government to rationalise the excessive tax hikes, reconsider the mandatory yearly revision of license fees, and engage in dialogue with industry bodies to create a sustainable policy framework. Both the public and industry stakeholders are now left questioning whose interests the government's liquor policies truly serve.- Ends