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Maharashtra Plans 328 New Liquor Licences as Bars Shut for Tax Protest

Bars across Maharashtra enforced a dry day to protest hefty excise duty, VAT and licence-fee hikes.

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Overview

  • The state government will end a 50-year moratorium by issuing 328 new shop licences under a leasing model with a Rs 1 crore non-refundable deposit instead of up to Rs 10 crore in market costs.
  • Officials estimate the scheme could boost excise revenue by Rs 14,000 crore annually to help fund welfare programmes such as the Mukhyamantri Majhi Ladki Bahin scheme.
  • Deputy Chief Minister Ajit Pawar’s committee overseeing the licence rollout has drawn conflict-of-interest allegations over ties between his associates and the liquor industry.
  • Under a binding 1974 rule, no new licences can be issued without legislature approval, a requirement Pawar reiterated after reports of the plan emerged.
  • Over 20,000 bars and permit rooms in cities from Mumbai to Nagpur staged a one-day ‘No Alcohol’ strike on July 14 to denounce a 60% excise hike, 10% VAT increase and 15% licence-fee rise.