Overview
- The excise overhaul approved in mid-June doubled VAT on liquor to 10%, raised license fees by 15% and imposed a 60% hike in excise duties from July 1.
- Maharashtra’s hospitality ecosystem comprises over 19,000 licensed bars and permit rooms, directly employs around 4 lakh people and supports 48,000 vendors plus 18 lakh dependents.
- AHAR warns that the steep tax burden is undermining business viability, risking widespread closures and layoffs in an industry still recovering from the pandemic.
- Industry leaders caution that higher levies may drive consumers towards smuggled liquor, eroding legal sales and reducing state revenue.
- The Indian Hotel and Restaurant Association has formally urged the government to roll back the recent tax hikes and initiate urgent stakeholder dialogue.