Maharashtra bars, permit rooms declare bandh on July 14 to protest tax hikes

Mint

12-07-2025

Mumbai, Jul 12 (PTI) Over 20,000 bars and permit rooms across Maharashtra will shut operations on July 14 to protest against the state government's 'draconian taxation', said the Indian Hotel and Restaurant Association (AHAR) on Saturday.
The bandh is to oppose the state government's tax hikes, including rise in VAT (value added tax) on liquor to 10 per cent, a 15 per cent increase in annual licence fees and a 60 per cent spike in excise duty, in a span of one year, AHAR said in a statement.
These tax hikes are pushing the ₹ 1.5 lakh-crore industry to the edge of collapse, it said.
'The entire hospitality sector in Maharashtra is bleeding. Our pleas have fallen on deaf ears. On July 14, every bar and permit room in the state will be shut in protest. Entire Maharashtra bars will remain shut against the state government's draconian taxation,' AHAR president Sudhakar Shetty said.
Members across Mumbai, Pune, Nashik, Nagpur, and Konkan have confirmed full participation, he added.
These hikes, clubbed with ongoing post-COVID recovery challenges, have rendered the business model unviable for thousands of establishments, said AHAR. The move 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, it claimed.
'This is not just an economic blow, it is a death blow to an industry that contributes significantly to employment and state taxes,' said Shetty.
The 20,000-strong permit rooms and bars industry directly and indirectly employs over 20 lakh jobs, and supports a wider ecosystem of 48,000 vendors.
National Restaurant Association of India (NRAI), Hotel and Restaurant Association (Western India) – HRAWI, and affiliated as well as non-affiliated associations of hotels and restaurants in Maharashtra have extended their support to the July 14 bandh.
The industry also plays a vital role in Maharashtra's tourism-driven economy, especially in cities like Mumbai and Pune, they said.
'We stand united with our fraternity members across Maharashtra in expressing our deep concern over these regressive policy measures. If implemented, they will further strain the already fragile business environment and will hurt both consumers and operators.