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Time of India
6 days ago
- Business
- Time of India
Taxing time awaits Pune tipplers as permit rooms & bars plan to up menu prices
Pune: Hard times await tipplers with owners of bars and permit rooms in the city making it clear that if state govt does not reverse its nod to revise the excise tax and liquor licence fees, they would pass on the financial burden to their customers. The price of a quarter bottle (180ml) of regular alcohol, currently available for Rs150, is likely to go up byRs90-100 with the state cabinet recently approving a revision in excise taxes. Similarly, liquor prices in permit rooms or bars are expected to rise proportionately, taking into account the increased taxes. "It will, however, not be a standard increase. Different brands will have different price increases," said Sudhakar Shetty, president of Indian Hotel and Restaurant Association. "For premium brands, we estimate a 15-20% increase. For Indian-made foreign liquor (IMFL) and mass brands, the rise could be in the 60-70% bracket," he said. You Can Also Check: Pune AQI | Weather in Pune | Bank Holidays in Pune | Public Holidays in Pune Permit rooms and bars across the state remained closed on Monday in protest against the Maharashtra govt's decision to increase taxes and licence fees. If the industry is to survive, owners are demanding a rollback of VAT, a phased increase in excise duty, and a limited increase in licence fees. Girish Poojari, owner of a restaurant and bar in Kharadi, said: "If a quarter bottle of regular alcohol costs us between Rs150 and Rs300, no one will be willing to pay Rs400-500. Many licences will be surrendered. We will also keep an eye on our business for 1-2 months and do a calculation to see if business is feasible. " Menu prices were likely to go up by at least 15%, said Saili Jahagirdar, owner of a bistro in Kothrud. "If licence fees are reduced, many restaurants can afford alcohol licences. This will also increase state revenues," she said. For smaller permit rooms and bars, the increase in prices will drive away 30-40% of the customers, the operators fear. "We have two options — either to increase the seating capacity or surrender the licence. With high licence fees and taxes, customers will not be able to afford liquor. Rentals, salary costs and overheads are difficult to manage if inflows are less," said an owner of a 150-seater permit room in Dhankawadi. Vishwanath Poojari, who runs a resto bar in Katraj, said, "About 30% of my customers will go to shops if prices are increased substantially. We are waiting for all the brands to finalise price increases before we increase the menu prices." All this could have a cascading impact on employment as many owners said they would be forced to reduce staff strength to manage costs. Ajinkya Udane, co-chapter head, National Restaurant Association of India (NRAI), said: "It (the rise in excise taxes and licence fees) will destroy small permit rooms and bars. At the end of the day, they also have to sustain and do business. Even a small permit room bar will have 15-20 employees." Rajesh Nadkarni, a resident of Karvenagar, said: "We may have to reduce our outings if alcohol prices increase so much. It is cheaper to buy directly from a store as the effective price increase would be less."
Mint
12-07-2025
- Business
- Mint
Maharashtra bars, permit rooms declare bandh on July 14 to protest tax hikes
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.
The Hindu
10-07-2025
- Business
- The Hindu
AHAR asks Maharashtra Govt. to roll back tax hikes
High taxes and levies have endangered Maharashtra's hospitality industry's future as well as the livelihoods of millions, the Indian Hotel and Restaurant Association (AHAR) said on Wednesday (July 9, 2025). In less than a year, the industry has faced back-to-back financial shocks which include increase in Value Added Tax (VAT) on liquor from 5% to 10%, 15% hike in license fees for FY26 and surge in excise duty by a whopping 60%. AHAR has cautioned that the recent policy decisions by the State government would push the industry towards collapse. 'This is not just an economic blow; it is a death blow to an industry that contributes significantly to employment and state taxes,' Sudhakar Shetty, President, AHAR, said while addressing a press conference. 'These draconian hikes are the final nail in the coffin. Our members are devastated and starring at a bleak future. From Excise renewal fees hike to an unprecedented hike in VAT and Excise Duty, our survival itself has become a question mark,' he said. 'We appeal to the government to engage with the industry and initiate urgent steps to roll back the tax hikes,' he added. According to AHAR these taxes will have far-reaching consequences as the hospitality industry in Maharashtra has over 19,000 legal permit rooms and lounge bars and the number growing by 8% annually. While the industry directly employs more than 4 lakh individuals and supports around 48,000 vendors about 18 lakh people are indirectly dependent on this sector for their livelihoods. 'Tax evasion and corruption are bound to rise as liquor from neighbouring states will make its way into the state through illegal channels. Burdening such a large ecosystem with excessive taxation will have a cascading impact—not only on businesses but on employment, ancillary industries, and consumer sentiment as well,' AHAR said. It emphasised that all its members had expressed strong displeasure over the government's apathy. Many fear they would not be able to continue operations under such pressure, the AHAR president said. The Association has urged the government to immediately reconsider these policies and engage in dialogue with the industry before implementing any further changes.
