Maharashtra’s 20,000-strong permit rooms and bars will be closed on July 14 to protest against the state government’s “regressive policy measures” and “draconian taxation”, said the Indian Hotel and Restaurant Association (AHAR) on Saturday.
The hotel body says that the state government increased multiples taxes in a span of one year, including the VAT (value added tax) on liquor that was raised to 10 per cent, a 15 per cent increase in annual license fees and a 60 per cent spike in excise duty.
These tax hikes are pushing the ₹1.5 lakh-crore industry to the edge of collapse, it said.
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“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 AHAR president, Sudhakar Shetty.
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.
The state’s hotel and bar industry directly and indirectly employs over 20 lakh employees, and supports a wider ecosystem of 48,000 vendors. It also plays a vital role in Maharashtra’s tourism-driven economy, especially in cities like Mumbai and Pune.
“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.
AHAR is being supported by members from across Mumbai, Pune, Nashik, Nagpur, and Konkan, said Shetty.
The 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 also extended their support to the July 14 bandh.
Jimmy Shaw, president of HRAWI, said the peaceful protest is intended to “draw urgent attention to the disproportionate impact of the move”.
“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,” he said.
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