Maharashtra's Hospitality Sector Shuts Down over 'Draconian Taxation'

In a significant protest, over 20,000 bars and permit rooms across Maharashtra will close their doors on July 14. This strike, led by the Indian Hotel and Restaurant Association (AHAR), aims to oppose the state government's recent tax hikes, which industry leaders have called 'draconian.'

The taxes in question include a rise in value-added tax (VAT) on liquor to 10 percent, a 15 percent jump in annual license fees, and a substantial 60 percent increase in excise duty over the past year. AHAR members claim these hikes are pushing the hospitality sector to the brink, threatening the viability of an industry worth Rs 1.5 lakh-crore.

Supporting this protest are various associations, including the National Restaurant Association of India and the Hotel and Restaurant Association Western India. They highlight that the increased taxes exacerbate post-COVID recovery challenges, risking mass unemployment and promoting illegal liquor trade from neighboring states.

(With inputs from agencies.)