20,000 Bars In Maharashtra To Remain Shut On July 14 In Protest Against Tax Hikes

More than 20,000 bars and permit rooms across Maharashtra will remain closed on July 14, as the hospitality industry stages a statewide bandh to protest what it describes as excessive and unsustainable taxation by the state government. The Indian Hotel and Restaurant Association (AHAR), which announced the bandh, has condemned the series of tax increases introduced over the past year.

The protest targets multiple tax hikes, including a 10 per cent VAT on liquor, a 15 per cent rise in annual licence fees, and a staggering 60 per cent jump in excise duty. AHAR has warned that these moves are severely straining a sector already grappling with the lingering effects of the COVID-19 pandemic.

Industry On The Brink

“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,” said Sudhakar Shetty, president of AHAR, reported PTI.

According to the association, the compounded tax burden threatens to derail a Rs 1.5 lakh-crore industry that provides direct and indirect employment to more than 20 lakh individuals and supports 48,000 vendors across the state.

Widespread Support From Industry Associations

Major hospitality hubs such as Mumbai, Pune, Nashik, Nagpur, and Konkan will participate in the bandh. The protest has garnered support from other key industry bodies including the National Restaurant Association of India (NRAI) and the Hotel and Restaurant Association of Western India (HRAWI), alongside various affiliated and unaffiliated associations.

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Impact on Tourism and Employment

“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,” AHAR said in a statement.

Jimmy Shaw, president of HRAWI, added, “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,” as per the report.

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