4,000 permit rooms in Pune and Pimpri Chinchwad to remain shut on July 14 to protest tax hikes

Time of India

12-07-2025

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Pune: The restaurant and hoteliers' association in the city said continuous hike in taxes on bars and restaurants has made it difficult for them to operate, forcing many small establishments to consider shutting down their business.
Three tax hikes in a year on bars and restaurants in the state have already led to an increase in black market sales or smuggling of liquor from other states, Pune Restaurant and Hoteliers Association (PRAHA) said.
The association has given a state-wide dry day call on Monday to protest the govt's taxation policy. More than 4,000 permit rooms and bars in Pune and Pimpri Chinchwad will participate in the strike.
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"In Maharashtra, due to service tax and VAT imposed by the central and state govts, along with excise duties, customers are being charged excessively.
For a bottle that costs Rs 100 in the market, the customer ends up paying Rs 300 or more in restaurants and permit rooms. This burden has resulted in a drastic decline in customer footfall," said Ganesh Shetty, president, PRAHA.
"Taxes have constantly been increasing for the industry. It is becoming unaffordable for permit room owners like us to operate. Eighty per cent of the premises are on rent, and we can't keep revising prices on the menu.
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The high prices will drive away customers from bars. We urge the govt to reconsider these high taxes," said Vishwanath Poojari, who has been running Katraj Junction Family Resto Bar for the last 19 years.
"Sales usually get impacted negatively when we increase prices. We have a staff of over 100 people, and this puts further pressure on staff expenses and other overheads. Business has become difficult for us," said Jawahar Chorge, owner, Nisarg Seafood at Erandwane.
The association is protesting against VAT on liquor, which has been hiked from 5% to 10%, a 15% increase in annual licence fees, and a 60% spike in excise duty in a span of one year.
The changing tax structures have led to frequent menu changes and supply disruption. "This changing policy has caused lots of disruption in customer retention, and business has been impacted. We are losing business to home consumption and other states.
There is business instability and no predictability due to frequent policy changes," said Ajinkya Udane, Pune co-chapter head, National Restaurant Association of India, which has also decided to support the strike.
All regional associations in the state will participate in the strike, and members across Mumbai, Pune, Nashik, Nagpur, and Konkan have confirmed full participation.
The hospitality industry in Maharashtra is already reeling under operational and regulatory challenges, said Jimmy Shaw, president, Hotel and Restaurant Association (Western India).
"The recent hike in excise duty, coupled with the additional 10 per cent VAT on FL3 liquor sales and a 15 per cent increase in annual licence fee, is not just excessive; it is punitive. We request the govt to review this decision in the interest of economic stability, employment, and ease of doing business," he added.
Pune: The restaurant and hoteliers' association in the city said continuous hike in taxes on bars and restaurants has made it difficult for them to operate, forcing many small establishments to consider shutting down their business.
Three tax hikes in a year on bars and restaurants in the state have already led to an increase in black market sales or smuggling of liquor from other states, Pune Restaurant and Hoteliers Association (PRAHA) said.
The association has given a state-wide dry day call on Monday to protest the govt's taxation policy. More than 4,000 permit rooms and bars in Pune and Pimpri Chinchwad will participate in the strike.
"In Maharashtra, due to service tax and VAT imposed by the central and state govts, along with excise duties, customers are being charged excessively.
For a bottle that costs Rs 100 in the market, the customer ends up paying Rs 300 or more in restaurants and permit rooms. This burden has resulted in a drastic decline in customer footfall," said Ganesh Shetty, president, PRAHA.
"Taxes have constantly been increasing for the industry. It is becoming unaffordable for permit room owners like us to operate. Eighty per cent of the premises are on rent, and we can't keep revising prices on the menu.
The high prices will drive away customers from bars. We urge the govt to reconsider these high taxes," said Vishwanath Poojari, who has been running Katraj Junction Family Resto Bar for the last 19 years.
"Sales usually get impacted negatively when we increase prices. We have a staff of over 100 people, and this puts further pressure on staff expenses and other overheads. Business has become difficult for us," said Jawahar Chorge, owner, Nisarg Seafood at Erandwane.
The association is protesting against VAT on liquor, which has been hiked from 5% to 10%, a 15% increase in annual licence fees, and a 60% spike in excise duty in a span of one year.
The changing tax structures have led to frequent menu changes and supply disruption. "This changing policy has caused lots of disruption in customer retention, and business has been impacted. We are losing business to home consumption and other states.
There is business instability and no predictability due to frequent policy changes," said Ajinkya Udane, Pune co-chapter head, National Restaurant Association of India, which has also decided to support the strike.
All regional associations in the state will participate in the strike, and members across Mumbai, Pune, Nashik, Nagpur, and Konkan have confirmed full participation.
The hospitality industry in Maharashtra is already reeling under operational and regulatory challenges, said Jimmy Shaw, president, Hotel and Restaurant Association (Western India). "The recent hike in excise duty, coupled with the additional 10 per cent VAT on FL3 liquor sales and a 15 per cent increase in annual licence fee, is not just excessive; it is punitive. We request the govt to review this decision in the interest of economic stability, employment, and ease of doing business," he added.