Published: July 15, 2025 | Mumbai
Bars and restaurants across Maharashtra went on a one-day strike on Monday, July 14, to protest against the state government’s steep hike in taxes on alcoholic beverages.
The strike, led by the Hotel and Restaurant Association of Western India (HRAWI), was in response to the Devendra Fadnavis government’s decision to increase excise duty on liquor by 60%, raise annual FL3 license fees by 15% for FY26, and add a 10% VAT on Indian-Made Foreign Liquor (IMFL) sold at licensed outlets.
As part of the protest, members of the Hotel Association in Thane staged demonstrations and suspended alcohol service in support of the movement.
“This tax hike will not only make liquor more expensive but will also hurt businesses and tourism. Maharashtra has several UNESCO-recognized monuments, and if we want to promote tourism, we must be competitive and tourist-friendly,” said Pradeep Shetty, a member of HRAWI.
The association also sent a formal letter to Deputy Chief Minister Ajit Pawar, warning that the increased taxes could push up retail prices sharply and put added pressure on an already struggling hospitality industry.
Jimmy Shaw, President of HRAWI, added, “With rising costs, higher license fees, and the new VAT, Maharashtra could soon have the most expensive alcohol in the country. This will discourage tourists and make it harder for local bars and restaurants to survive.”
While the government may be looking to raise revenue to support welfare schemes like the Ladki Bahin initiative, hospitality leaders are urging policymakers to consider the long-term impact on business and tourism.
