Mumbai: Correspondent
In protest against what it describes as an "exorbitant and crippling" hike in various state taxes, the hotel and restaurant industry in Maharashtra has called for a statewide bandh on July 14, announced by the AHAR (Indian Hotel and Restaurant Association). More than 20,000 hotels and restaurants across the state are expected to remain shut that day, according to AHAR President Sudhakar Shetty.
The association has strongly opposed the recent increase in VAT on liquor, license fees, and excise duties, claiming these revisions are threatening the survival of the hospitality industry. “This is no longer just about business — it's a fight for survival,” said Shetty. Despite repeated appeals to the state government to reconsider the hikes, there has been "complete disregard" for the concerns raised by the industry, he added.
The VAT on liquor has been increased from 5% to 10%, the license fee by 15%, and the excise duty by a staggering 60%, sparking widespread anger and concern within the sector.
Maharashtra's hospitality industry, comprising over 20,000 licensed establishments, provides direct and indirect employment to more than 2 million people. Additionally, the livelihood of around 48,000 suppliers is directly linked to this sector. Cities like Mumbai and Pune, where tourism heavily relies on the hospitality sector, are expected to be significantly impacted by the shutdown.
Shetty also criticized the state government, stating, “While the central government is working to boost tourism, the Maharashtra government’s tax policies are doing just the opposite — weakening the backbone of the tourism economy.”
The industry demands immediate rollback of the tax hikes to prevent further damage to one of the state’s most employment-generating and tourism-supporting sectors.
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