To protest ‘death blow' by 3 tax hikes, 20k bars in state to shut on Monday

Time of India

11-07-2025

Mumbai: Be prepared to be refused liquor in the city's restaurants and bars on Monday. For, over 20,000 bars and permit rooms in the state will shut operations as part of a one-day strike to protest the "draconian tsunami" of three tax hikes in a year.
Accusing govt of killing jobs, destroying tourism prospects and ignoring the hospitality industry's pleas, Association of Hotels and Restaurants (AHAR), the apex body of restaurants and bars in the state, said the "relentless and unjust" tax hikes are pushing the Rs 1.5-lakh crore industry to the brink of collapse.
"The entire hospitality sector in Maharashtra is bleeding," said Sudhakar Shetty, president of AHAR.
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Within the past year, VAT on liquor was hiked from 5% to 10%, then annual license fees raised by 15%, and more recently, excise duty was increased by 60%. AHAR said these hikes, clubbed with ongoing post-Covid recovery challenges, have rendered the business model unviable for thousands of establishments. It warned that they will not only wipe out thousands of small and mid-sized businesses but also lead to mass unemployment and a black market surge in liquor smuggling from neighbouring states.
The 20,000-strong permit rooms and bars directly and indirectly employ over 20 lakh people and support a wider ecosystem of 48,000 vendors, it said.
"The hikes are not just an economic blow; they will serve a death blow to an industry that contributes significantly to employment and state taxes," said Shetty. "These draconian hikes are the final nail in the coffin... Our survival is at stake."
National Restaurant Association of India, Hotel and Restaurant Association (Western India), and affiliated and non-affiliated associations of Hotels and Restaurants in Maharashtra have extended support to the strike.