Pune: Maharashtra Bars and Restaurants to Shut Down on Monday in Protest Against Steep Tax Hikes

Mumbai, 12th July 2025: If you’re planning to visit a bar or restaurant in Maharashtra on Monday, be prepared for closed doors. Over 20,000 bars and permit rooms across the state will observe a one-day strike, voicing their opposition to what they describe as a series of “crushing” tax hikes that threaten the very survival of the hospitality industry.

The Association of Hotels and Restaurants (AHAR), which represents restaurants and bars statewide, has called for the shutdown, stating that the three consecutive tax hikes within a year have pushed the ₹1.5 lakh crore industry to the edge.

“The entire hospitality sector in Maharashtra is bleeding,” said Sudhakar Shetty, president of AHAR. “These back-to-back increases are not just unfair, they’re unsustainable.”

Three Major Hikes in One Year
Over the past 12 months, the government has raised the Value Added Tax (VAT) on liquor from 5% to 10%, hiked annual license fees by 15%, and most recently increased excise duty by 60%. Industry leaders say this triple blow, coming on the heels of a slow post-Covid recovery, is devastating for small and mid-sized establishments.

According to AHAR, these hikes could lead to widespread closures, mass unemployment, and a boom in illicit liquor trade as businesses struggle to remain operational. The hospitality sector, it added, employs over 20 lakh people directly and indirectly, and sustains a network of over 48,000 vendors across Maharashtra.

“These increases are a direct threat to livelihoods and legal business models,” Shetty added. “They could wipe out thousands of establishments, push workers into joblessness, and open doors for illegal liquor from neighboring states like Goa and Karnataka.”

Industry Unity and Warnings
The strike has garnered support from several key industry bodies, including the National Restaurant Association of India (NRAI), the Hotel and Restaurant Association (Western India), and both affiliated and independent associations across the state.

The protesting bodies allege that the state government has repeatedly ignored their pleas for relief, despite the sector’s significant contributions to employment, tourism, and tax revenues.

“This is not just an economic protest—it’s a call for survival,” Shetty emphasized. “Unless the government reviews these irrational increases, Maharashtra’s hospitality landscape could face irreversible damage.”