Mumbai, July 12: All bars and permit rooms across Maharashtra will remain shut on Monday, July 14, as part of a statewide bandh or strike (Maharashtra Bandh) called by the Indian Hotel and Restaurant Association (AHAR) to protest against what it terms as “draconian taxation” policies imposed by the BJP-led state government.

The hospitality industry has raised alarm over recent tax hikes, including a doubling of Value Added Tax (VAT) on liquor to 10%, a 15% rise in annual license fees, and a 60% increase in excise duty. AHAR, which represents over 20,000 bars and permit rooms in the state, said these measures are threatening the survival of thousands of small and medium-sized businesses already grappling with post-pandemic recovery challenges. Hotel Owners in Navi Mumbai Demand Excise Duty Hike Rollback.

What Hospitality Industry Is Saying?

“The entire hospitality sector in Maharashtra is bleeding. Our pleas have fallen on deaf ears,” said Sudhakar Shetty, president of AHAR. “On July 14, every bar and permit room in the state will be shut in protest. This is not just an economic blow, it is a death blow to an industry that contributes significantly to employment and state revenue.”

What Are Their Demands?

According to AHAR, Maharashtra’s INR 1.5 lakh-crore hospitality industry directly and indirectly employs over 20 lakh people and supports a network of nearly 48,000 vendors. The bandh aims to press the government for a more sustainable tax regime, warning that continued financial pressure could lead to mass closures, job losses, and a rise in liquor smuggling from neighbouring states. Uber Shuttle and Cityflo To Go Off Roads in Mumbai From July 12 As Maharashtra Govt Cracks Down on App-Based Buses Over Licenses, Over 450 Services Face Suspension.

The protest is receiving broad support across the sector. The National Restaurant Association of India (NRAI), Hotel and Restaurant Association of Western India (HRAWI), and other affiliated and non-affiliated associations in cities such as Mumbai, Pune, Nashik, Nagpur, and across the Konkan region have extended solidarity.

“This peaceful bandh is a unified stand to highlight the disproportionate impact of these tax hikes,” said Jimmy Shaw, president of HRAWI. “If these measures are not rolled back, they will destabilise an already fragile industry and hurt both consumers and operators.”

(The above story first appeared on LatestLY on Jul 13, 2025 12:11 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).