**Maharashtra Bars to Protest Tax Hikes with Statewide Shutdown**
Over 20,000 bars and permit rooms in Maharashtra are set to close on July 14 in response to the state government’s steep tax increases, according to the Indian Hotel and Restaurant Association (AHAR). This protest aims to highlight the adverse effects of the government’s “draconian taxation” policies, which include a rise in the value-added tax (VAT) on liquor to 10%, a 15% increase in annual license fees, and a staggering 60% hike in excise duty within just one year.
AHAR has expressed that these tax hikes are pushing the ₹1.5 lakh-crore industry to the brink of collapse. “The entire hospitality sector in Maharashtra is suffering. Our appeals have gone unheard. On July 14, every bar and permit room in the state will shut down in protest against these excessive taxes,” stated AHAR president Sudhakar Shetty. Bars across major cities including Mumbai, Pune, Nashik, Nagpur, and Konkan are expected to participate fully in the shutdown.
The association warns that these tax increases, combined with ongoing challenges in recovering from the COVID-19 pandemic, have made the business model unsustainable for many establishments. The shutdown could lead to the closure of thousands of small and mid-sized businesses, resulting in mass unemployment and a potential rise in illegal liquor smuggling from neighboring states.
“This is not merely an economic setback; it poses a significant threat to an industry that plays a crucial role in employment and state revenue,” Shetty added. The bar and permit room sector directly and indirectly supports over 2 million jobs and sustains a network of 48,000 vendors.
Support for the July 14 protest has also been extended by the National Restaurant Association of India (NRAI), the Hotel and Restaurant Association (Western India) – HRAWI, and various affiliated and non-affiliated associations within Maharashtra’s hospitality sector. They emphasize the importance of this industry in driving tourism, particularly in cities like Mumbai and Pune.
“We stand united with our colleagues across Maharashtra in voicing our serious concerns regarding these regressive policies. If enacted, they will further strain an already fragile business environment, adversely affecting both consumers and operators. This peaceful protest aims to draw urgent attention to the disproportionate impact of these measures,” stated HRAWI president Jimmy Shaw.
In conclusion, the upcoming shutdown of bars and permit rooms in Maharashtra serves as a critical response to the government’s tax policies, highlighting the urgent need for dialogue and reconsideration to protect the hospitality industry and its significant contributions to the state’s economy.
**FAQ**
**Q: Why are bars in Maharashtra shutting down on July 14?**
A: Bars and permit rooms in Maharashtra are closing to protest against significant tax hikes imposed by the state government, which they believe threaten the viability of the hospitality industry.
