Excise policy protest: Maharashtra bars, permit rooms to shut on July 14; Industry body calls tax hikes ‘draconian’

More than 20,000 bars and permit rooms across Maharashtra will observe a one-day bandh on July 14 to protest what the hospitality sector has called “draconian” tax hikes by the state government, the Indian Hotel and Restaurant Association (AHAR) said on Saturday.The association said the shutdown is aimed at opposing multiple tax increases imposed over the past year — including a 10% VAT on liquor, a 15% hike in annual licence fees, and a 60% surge in excise duty — which it claims are threatening the survival of the Rs 1.5 lakh-crore industry, PTI reported.“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,” AHAR president Sudhakar Shetty said in a statement. He added that members from Mumbai, Pune, Nashik, Nagpur, and Konkan have confirmed participation.AHAR warned that the aggressive taxation regime, coupled with post-COVID recovery challenges, is making the business model unsustainable for thousands of establishments. “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 permit room and bar segment, which supports over 20 lakh jobs both directly and indirectly, also sustains a wider network of nearly 48,000 vendors across Maharashtra.The industry fears the hike in liquor-related levies could lead to mass unemployment and a spike in black-market alcohol smuggling from neighbouring states, further weakening state revenues.Several major industry bodies, including the National Restaurant Association of India (NRAI) and Hotel and Restaurant Association (Western India) – HRAWI, along with various affiliated and unaffiliated hotel and restaurant associations across the state, have extended support to the bandh.“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 hurt both consumers and operators,” said HRAWI president Jimmy Shaw.AHAR urged the Maharashtra government to roll back the tax increases and initiate discussions with stakeholders to avoid long-term damage to one of the state’s key employment-generating and tourism-supporting sectors.