Over 11,500 hotel bars across Maharashtra are set to halt alcohol service on July 14, in a widespread protest organized by the Hotel and Restaurant Association of Western India (HRAWI) against significant new liquor tax hikes.
Maharashtra’s Hotels Take a Stand
This coordinated shutdown marks one of the largest demonstrations ever seen from Maharashtra’s hospitality sector. It’s a direct response to recent government decisions that have stirred deep concern among businesses.
The protest targets a series of tax increases including a 60 percent hike in excise duty, a new 10 percent VAT on Indian Made Foreign Liquor (IMFL) at FL3 outlets, and a 15 percent jump in FL3 license fees for the upcoming fiscal year.
“Existential Threat” to Businesses
Jimmy Shaw, President of HRAWI, described these tax increases as nothing short of an “existential threat” to the entire hospitality industry. He warned that for many establishments, this “triple blow” could lead to permanent closures.
Support for the protest has poured in from regional hotel associations across major destinations. Cities like Mumbai, Pune, Lonavala, Mahabaleshwar, Nashik, and Aurangabad have pledged to keep their bars and alcohol service sections closed all day.
Concerns for Tourism and Jobs
The HRAWI argues that the new tax regime will deter tourists and harm Maharashtra’s reputation as a welcoming state. The association projects severe consequences, including the shutdown of many bars and permit rooms, leading to the loss of over 4 lakh jobs.
They also anticipate a significant drop in both domestic and international tourist visits. This could potentially lead to an increase in unregulated alcohol consumption if legal venues become too expensive or scarce.
Shaw highlighted how these changes could impact family tourism, noting that an average tourist spends a considerable amount daily on food and beverages. He emphasized that the new taxes effectively make leisure tourism unaffordable for many Indian families.
A Plea for Dialogue
The HRAWI is urging the government to engage in a policy dialogue, reconsider the annual license fee increases, and rationalize the excise and VAT hikes. Their goal is to protect jobs and maintain economic stability within the sector.
Until a constructive dialogue takes place, the July 14 shutdown stands as a powerful and serious appeal for the survival of an industry vital to Maharashtra’s economy.
- Over 11,500 hotel bars in Maharashtra will close on July 14.
- The protest targets a 60% excise duty hike, 10% VAT on IMFL, and 15% increase in FL3 license fees.
- HRAWI states the taxes pose an “existential threat” to businesses and could lead to 4 lakh job losses.
- The industry fears a decline in tourism and an increase in unregulated alcohol consumption.
- HRAWI is calling for government dialogue to review and rationalize the new tax policies.
