Bar Bandh: Over 20,000 hotel bars in Maharashtra to suspend alcohol service on July 14 in protest against liquor tax hike
In a major protest against the recent hikes in liquor-related taxes, more than 20,000 bars and restaurants across Maharashtra will suspend alcohol service on Monday, July 14, as part of a state-wide 'Bar Bandh'.
The protest, called by the Hotel and Restaurant Association of Western India (HRAWI), aims to draw attention to what the industry describes as an 'existential threat' posed by the state government's new tax regime.
The hikes include: A 60% increase in excise duty
Doubling of VAT on liquor served at hotels and bars from 5% to 10%
A 15% increase in annual licence renewal fees for FY26
Over 11,500 hotel-based bars have already confirmed their participation, alongside thousands of standalone bars and restaurants in cities such as Mumbai, Pune, Nashik, Nagpur, Aurangabad, Lonavala, Mahabaleshwar, Vasai, and Palghar. The protest is also supported by the Federation of Hotel & Restaurant Associations of India (FHRAI), making it one of the largest coordinated actions in the state's hospitality sector.
Jimmy Shaw, President of HRAWI, said in a press release:
'This tax hike is nothing short of an existential threat to the hospitality sector. Many establishments will be forced to shut permanently. Our members are not just expressing dissent — they are fighting for survival.'
The tourism and hospitality industry contributes significantly to Maharashtra's economy, supporting over 20 lakh direct and indirect jobs and attracting more than 15 crore tourists annually.
Industry representatives argue that the compounded financial burden could lead to the closure of thousands of small and medium establishments, loss of over four lakh jobs, reduced tourist inflow, and a rise in unregulated alcohol consumption.
'An average tourist spends ₹2,000–₹5,000 a day, much of it on food and beverages. With these taxes, Maharashtra risks becoming one of the most expensive states for leisure tourism,' Shaw added.
HRAWI has called on the Maharashtra government to reconsider the increases and engage with industry representatives to create a more balanced, sustainable tax framework.
As the Bar Bandh takes effect on July 14, customers can expect disruption to alcohol service in establishments ranging from luxury hotels to budget eateries across the state.
Ahmedabad Plane Crash
Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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