To protest heavy taxes: Permit rooms, bars across state to stay shut on July 14

Over the last few months, the industry has been hit with three major hikes. VAT on liquor has been doubled from 5% to 10%. Annual license renewal fees have gone up by 15% and excise duty has seen a massive 60% increase.

“These hikes have come all at once, and we just cannot manage anymore,” said Ganesh Shetty, president of PRAHA. “Many restaurants and bars are thinking of shutting down. If this continues, thousands of jobs will be lost.”

The hospitality sector in Maharashtra includes over 19,000 licensed businesses and employs more than 4 lakh people directly. In Pune alone, there are around 4,200 establishments, supporting nearly 6 lakh people including farmers, vendors, delivery staff, and local workers.

“This isn’t just about restaurants,” Shetty explained. “So many other people — from vegetable suppliers to transporters—depend on this industry. The whole system is under threat.”

The association also warned that high taxes could lead to illegal alcohol being brought in from other states, which would cause a loss of revenue for the government and lead to law enforcement issues.

PRAHA has also pointed out that these tax hikes go against the Centre’s efforts to promote Maharashtra, including cities like Pune and Mumbai, as top global tourism spots.

“Tourists will avoid expensive places. They’ll go to states where things are more affordable,” Shetty said.

PRAHA is demanding that the state government take back the tax hikes, talk to industry representatives, and come up with a long-term, balanced plan that helps tourism and supports jobs. “If nothing is done soon, this could lead to permanent damage to an industry that supports lakhs of families,” Shetty said.

(The writer is an Intern with The Indian Express)