In a show of solidarity, over 11,500 hotel bars across Maharashtra will suspend alcohol service on Monday, July 14, as part of a state-wide protest against the recent hike in excise duties, VAT on liquor, and licence renewal fees.The Hotel and Restaurant Association HRAWI, has called for a ‘Bar Bandh’ and a ‘No Alcohol’ day, warning that the new tax regime poses a severe threat to the industry’s viability.
Acting on HRAWI’s advisory, regional hotel associations from cities including Palghar, Vasai, Pune, Nagpur, Aurangabad, Lonavala, Mahabaleshwar, and Nashik have confirmed their participation, pledging to not serve alcohol within hotels. The move, supported by HRAWI’s parent body, the Federation of Hotel & Restaurant Associations of India (FHRAI), is being described as one of the largest coordinated protests in Maharashtra’s hospitality sector.
As part of the protest, over 20,000 bars and restaurants across the state have pledged to suspend alcohol service for the day, in a silent show of dissent against the 60% increase in excise duty, the increase in VAT on liquor from 5% to 10%, and the yearly 15% increase in licence renewal fees for FY26.Also read | Delhi liquor sales: Nearly 17 crore bottles sold in Q1, govt rakes in over ₹2,660 cr in revenueThe protest comes in response to a series of tax hikes recently announced by the state government, which include a 60% increase in excise duty, the imposition of a 10% Value Added Tax (VAT) on Indian Made Foreign Liquor (IMFL) sold at FL3 outlets (permit rooms), and a 15% rise in annual FL3 licence fees for the 2025-26 financial year.”This tax hike is nothing short of an existential threat to the hospitality sector. For many establishments, this triple blow will mean shutting shop permanently. By participating in this protest, our members are not expressing dissent — they are fighting for survival,” Jimmy Shaw, president of HRAWI said in a press release.The tourism and hospitality industry plays a pivotal role in Maharashtra’s economy, supporting over 20 lakh direct and indirect jobs and attracting over 15 crore domestic and international tourists each year. With the proposed tax structure, Maharashtra risks becoming one of the most expensive states in the country to operate a licensed bar, which industry experts believe could deter both business and leisure travellers.Also read | World Rum Day 2025: 9 brands that you should add to your home barAccording to HRAWI, the new tax policy could lead to closures of bars and permit rooms, loss of over four lakh jobs, a sharp decline in tourist inflow, and an increase in unregulated alcohol consumption in public spaces. The association has argued that the compounded financial pressure may force smaller establishments to shut down, while larger ones will struggle to maintain competition.”An average tourist spends between ₹2,000 and ₹5,000 a day, and a significant part of that is on food and beverage. With these new taxes, Maharashtra is effectively pushing leisure tourism out of reach for Indian families,” Shaw added.The collective participation of 11,500 hotel-based bars is a sign of the industry’s concern on the hike in taxes. The protest is expected to affect establishments including, five-star hotels, city hotels and budget properties in smaller tourist towns.Also read | Exclusive: Sazerac sets sights on Indian whisky market with its bourbons portfolio”This is not just about alcohol — it’s about business viability, jobs, and Maharashtra’s standing as a tourism-friendly State. We urge the Government to reconsider these punitive measures immediately,” Shaw concluded.HRAWI is calling on the Maharashtra government to review and rationalise the proposed increases in excise duty, VAT, and licence fees. The association has urged the government to engage in discussions with industry representatives and develop a policy framework that balances revenue generation with long-term sustainability of the sector.
