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Time of India
16-07-2025
- 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."
Time of India
11-07-2025
- Business
- Time of India
To protest ‘death blow' by 3 tax hikes, 20k bars in state to shut on Monday
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. You Can Also Check: Mumbai AQI | Weather in Mumbai | Bank Holidays in Mumbai | Public Holidays in Mumbai 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.
Hindustan Times
28-06-2025
- Business
- Hindustan Times
Nearly half of Delhi's liquor licensees apply for renewal
Around half of Delhi's hotels, clubs and restaurants with excise licenses to serve liquor applied for renewals within 24 hours of the excise department issuing a circular mandating fresh licenses, two officials aware of the matter said on Saturday. A liquor store in Delhi. (AFP) The officials cited above added that approximately 40% of Delhi's 713 government-run retail liquor stores have also submitted renewal applications. They clarified there is currently no threat of a disruption in liquor supply in the Capital. On Friday, the Delhi government extended the existing liquor policy till March 2026 — one of the longest such extensions since the controversial 2021-22 excise regime was scrapped in September 2022 over alleged irregularities. Delhi has around 1,000 licensees in the hotels, clubs, and restaurants (HCR) category, including L16 (independent restaurants), L17 (hotels), and L18 (clubs). 'By Saturday afternoon, roughly 50% of HCR licensees had applied through the excise portal. The entire process, including payment, is online. We are working to ensure that those who pay the required fees get their renewed licenses before June 30,' said an excise official. The apparent urgency stems from the fact that the existing licenses — issued in March — expire on June 30. Without renewal, establishments cannot order fresh liquor stock or serve alcohol from July 1 onward. The tight deadline has left the hotels, clubs, and restaurants across the city are scrambling to renew their licenses in time, one of the officials cited above said. The official added that 40% of the retail stores run by the four Delhi government corporations have also initiated the renewal process. The e-Abkari portal handles the online application process, which requires licensees to upload documents such as a fire NOC and trade license. 'Once submitted, the documents are verified within two hours. If cleared, a payment link is emailed and texted to the applicant. After payment, the license is automatically generated,' said another excise department official. Despite the streamlined process, many restaurant owners have expressed concern over the short notice. 'We've been given just three days before the June 30 deadline. Two of those are weekend days, when we're busiest. The process is quick, but document scrutiny still takes time. The government should have given us at least a week,' said the owner of a Connaught Place restaurant, requesting anonymity. The government's decision to extend the current liquor policy again underscores the ongoing uncertainty around Delhi's excise framework. A new policy has been in the works for over 33 months but is yet to be finalised. Friday's extension means the city will continue operating under the 2020-21 excise policy, which has already been extended five times. Sandeep Anand Goyle, Delhi chapter head of the National Restaurant Association of India (NRAI), urged the government to expedite the rollout of the new policy. 'The government has extended the current regime till the end of the financial year, but we request that a new excise policy be announced soon to encourage investment, employment, and to curb the flight of business to neighbouring cities. This will also boost government revenue,' he said. Excise officials, however, maintained that all applications submitted before the June 30 deadline will be processed on priority. 'There is no cause for panic. All establishments that follow the procedure and pay the required fee on time will receive their renewed licenses without disruption,' one of them said.
New Indian Express
24-06-2025
- Business
- New Indian Express
NRAI hails move to scrap police nod for eateries in Delhi
NEW DELHI: The National Restaurant Association of India (NRAI) has welcomed the L-G's decision to scrap the requirement for eateries to obtain a police-issued 'no-objection' certificate, calling it a transformative step for the city's food and beverage (F&B) industry. Terming it a 'much-needed reform,' the NRAI said the move would ease regulatory burdens, boost entrepreneurship, and attract investment into the sector. The order, issued by L-G, exempts restaurants and other establishments from the need to obtain the Delhi Police Eating House Licence. The licensing authority will now rest with local civic bodies like the Municipal Corporation of Delhi, New Delhi Municipal Council, and Delhi Cantonment Board. 'This change will reduce administrative hurdles and significantly improve the ease of doing business for the F&B sector,' the NRAI said. It added that the process is likely to boost investment and contribute revenue to government.
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Business Standard
23-06-2025
- Business
- Business Standard
NRAI welcomes Delhi government's move easing licensing norms for F&B
The National Restaurant Association of India (NRAI) on Monday expressed gratitude to Delhi Chief Minister Rekha Gupta for easing licensing norms for food and beverage (F&B) businesses in the city. As per the new directive, hotels, restaurants, guesthouses, discotheques and similar establishments operating in the national capital will no longer be required to obtain the Delhi Police Eating House Licence. 'This change will reduce administrative hurdles and significantly improve the ease of doing business for the F&B sector in the capital. This will also increase investments by the F&B sector, which will bring in additional revenue to the Delhi government's exchequer in various forms in the future,' said an NRAI statement. The decision is expected to bring major relief to restaurant owners, particularly small and medium-sized enterprises, who have long struggled with the burden of acquiring multiple governmental clearances. 'We wholeheartedly thank the Central and Delhi governments for this forward-looking step. Removing the requirement for the Delhi Police Eating House Licence is a significant relief for restaurateurs who have long faced unnecessary delays and complexities,' said Sagar Daryani, NRAI president. 'We are proud that NRAI's persistent efforts have contributed to this much-needed change. This reform will not only save time and resources but also foster a more vibrant, business-friendly environment for both existing and aspiring entrepreneurs in the F&B sector,' he added. For the hospitality industry, which is still recovering from the disruptions of recent years, such a reduction in compliance burden will go a long way in encouraging entrepreneurship and boosting investor confidence. 'We hope this reform in Delhi will serve as a model for other states to revisit archaic licensing practices and move towards a more streamlined and business-friendly regulatory environment,' said K Syama Raju, president of the Federation of Hotel & Restaurant Associations of India.
