Over 3,000 Permit Rooms in Pune and Pimpri-Chinchwad Closed Today Amid Statewide Liquor Tax Protest

Reported by Varad Bhatkhande
Pune, 14th July 2025: Over 20,000 bars and permit rooms across Maharashtra are shutting down operations today as part of a statewide bandh to protest steep hikes in liquor-related taxes imposed by the Maharashtra government. The strike is being spearheaded by the Indian Hotel and Restaurant Association (AHAR), with support from major industry bodies such as the National Restaurant Association of India (NRAI) and the Hotel and Restaurant Association of Western India (HRAWI).

As part of this protest, over 3,000 permit rooms in Pune and more than 1,500 in Pimpri-Chinchwad are remaining shut for 24 hours, significantly affecting local hospitality businesses.

The hospitality sector is calling the new tax regime “draconian,” citing a 10% VAT on liquor, a 15% increase in annual licence fees, and a 60% spike in excise duty within a year. Industry leaders are warning that these measures are pushing the ₹1.5 lakh-crore sector toward collapse, particularly as many establishments are still recovering from the financial toll of the COVID-19 pandemic.

Ganesh Kurule, chairman of the Pimpri-Chinchwad Hotel and Restaurant Association, said, “There is a complete bandh of resto-bars across Maharashtra. The excise rate hike is putting pressure on consumers, and we’re finding it difficult to sustain. VAT has also been increased, which is another burden. We’re urging the government to roll back these hikes. Illegal activity will only rise if this continues. We are paying multiple taxes, how are we expected to survive? We will have no choice but to shut down permanently or look for alternative livelihoods.”

Another hotelier added, “Earlier, the fee used to rise 10% annually. This year, it’s gone up by 15%, and the liquor we buy has become 60% more expensive. It’s going to destroy our industry. People will avoid licensed businesses and instead turn to illegal, unregulated liquor stalls. The government is indirectly promoting crime. Over 20,000 hoteliers across Maharashtra are affected. We employ more than 10 lakh people, this will ruin livelihoods.”

The bandh is seeing strong participation across major cities including Mumbai, Pune, Nashik, Nagpur, and the Konkan region. Industry representatives are demanding immediate government dialogue and a rollback of the tax hikes to protect the future of Maharashtra’s tourism and employment-driven economy.