3 days ago
Owners threaten to shut bars from Aug 25 over high taxes on liquor
Nagpur: Bar owners have suffered a drop in revenue since the state govt increased excise duty and VAT on liquor. Faced by financial trouble, the Vidarbha Restaurant Permit Room Sanghatana, and Nagpur District Restaurant Permit Room Association have warned that all permit rooms in Vidarbha will be closed indefinitely from August 25.
In the last 10 years, the VAT burden on permit rooms has increased tremendously, with an increase from 5% to 10% last year. Additionally, there has been a 60% increase in excise duty from June 2025. As a result, the permit room business is facing a financial crisis, and the organization claims that sales have dropped by 75%. The organization has alleged that this govt decision is causing legal businesses to collapse while encouraging illegal liquor sales and smuggling.
A warning has also been given that if permit rooms close, there will be a loss of Rs100 crore in revenue for the state.
To present their demands to the govt, permit rooms across Maharashtra were kept closed on July 14. Demonstrations were also held at Sanvidhan Chowk. A march was also taken to the district collector's office. On August 16, the organization submitted a memorandum, giving the govt a 10-day deadline. If no meeting is held or if the decision to increase taxes is not withdrawn, intense agitation will be launched, warned president Rajiv Agrawal, secretary Navin Bavankule, joint treasurer Chetan Parekh along with prominent office bearers from Vidarbha.
The organization has sent letters to chief minister Devendra Fadnavis, deputy chief minister Ajit Pawar, chief secretary, and state excise commissioner.
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