Maharashtra bars to declare dry day to protest against tax hike

Mumbai: The bars and permit rooms across Maharashtra will not serve alcoholic beverages on July 14.

In a coordinated collective stand, over 20,000 bars and permit rooms across Maharashtra will shut operations on July 14 as part of a statewide bandh called by the Association of Hotels and Restaurants (AHAR).

The bandh is in protest against the Maharashtra government’s “relentless and unjust” tax hikes on the hospitality sector, which AHAR says are pushing the Rs 1.5 lakh crore industry to the edge of collapse.

The move comes after repeated appeals by the industry were met with silence, forcing AHAR to take the extreme step in what it describes as a battle for survival. It is unprecedented that nearly 20,000 Bars and Permit rooms, represented by AHAR across Maharashtra, unitedly opposing the Maharashtra Government’s ‘unjust’ taxes on the industry.

AHAR is protesting against VAT on liquor hiked from 5 per cent to 10 per cent, a 15 per cent increase in annual license fees and a 60 per cent spike in excise duty in a span of one year. The bandh is a reaction to what AHAR calls a “triple tax tsunami” that has struck the industry in less than a year.

“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 are shut against the state government's draconian taxation,” said Sudhakar Shetty, President, AHAR.

Members across Mumbai, Pune, Nashik, Nagpur, and Konkan have confirmed full participation.

“We have shown restraint, we have waited, and we have appealed. Now, we are forced to make ourselves heard through this bandh,” said Shetty.

These hikes, clubbed with ongoing post-Covid-19 recovery challenges, have rendered the business model unviable for thousands of establishments. AHAR warns that this 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.

“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. “These draconian hikes are the final nail in the coffin. From excise renewal fees to VAT and excise duty—our survival is at stake. If the government does not roll back these hikes, we fear mass closures and irreversible damage to Maharashtra’s hospitality landscape.”

These huge hikes in various taxes is likely to encourage more corrupt practices, resulting in a sharp revenue loss to the government as well, bar owners said.

The 20,000-strong permit rooms and bars industry directly and indirectly employs over 20 lakh jobs, and supports a wider ecosystem of 48,000 vendors.