Hospitality Hurricane: Toll of Taxation on Maharashtra's Hotels and Restaurants

The Indian Hotel and Restaurant Association (AHAR) has voiced significant dissent against recent excise duty hikes across Maharashtra, projecting severe repercussions for the hospitality sector. The abrupt increases might jeopardize the industry's post-pandemic recovery, while also impacting employment and state revenues.

AHAR President Sudhakar Shetty warned that the cumulative VAT increase, licensing fee surges, and a stark 60% rise in excise duty represent a financial 'tsunami' for the sector. He indicated that these measures could destabilize an industry pivotal to supporting over 18 lakh individuals through direct and indirect employment.

AHAR calls for government consultation to find a sustainable solution. Without intervention, the heightened costs may drive consumers towards illegal alternatives, risking public health and legal business operations. The association seeks an immediate tax rollback, emphasizing the broader economic threats posed by the current fiscal strategy.

(With inputs from agencies.)