Maharashtra's Hospitality Sector Strikes Back: Bars and Permit Rooms to Close in Protest Against 'Draconian' Tax Hikes

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Business

By Ryan Peterson 13 Jul, 2025

Massive Protest Against Tax Increases

Over 20,000 bars and permit rooms across Maharashtra are set to observe a one-day shutdown on July 14. This drastic action is a protest against what the Indian Hotel and Restaurant Association (AHAR) describes as "draconian" tax hikes by the state government.

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

The Burden of Taxation

The hospitality sector is reeling from multiple tax increases over the past year, including a 10% VAT on liquor, a 15% hike in annual licence fees, and a 60% surge in excise duty. These measures threaten the survival of the Rs 1.5 lakh-crore industry.

A Call for Government Action

AHAR president Sudhakar Shetty has called for the Maharashtra government to roll back the tax increases and engage in discussions with stakeholders to prevent long-term damage to this key employment-generating and tourism-supporting sector.