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Maharashtra hotel association held one-day strike to oppose duty hike on alcohol
Maharashtra hotel association held one-day strike to oppose duty hike on alcohol

The Hindu

time4 days ago

  • Business
  • The Hindu

Maharashtra hotel association held one-day strike to oppose duty hike on alcohol

Maharashtra's hospitality sector, consisting of bar and restaurant-based bars, held a Statewide ''No Alcohol' strike on Monday (July 14, 2025) opposing the Chief Minister Devendra Fadnavis' government's decision to hike excise duty. The Hotel and Restaurant Association of Western India (HRAWI) led the strike to counter the Maharashtra government decision to impose a 60% hike in excise duty, a 15% increase in annual FL3 license fees for Financial Year 26, and a 10% VAT on Indian-Made Foreign Liquor (IMFL) sold at FL3 outlets. 'The one-day strike to grab the attention of the government and make them understand that the tax hike will make everything expensive, which will affect businesses. Secondly, we want to look at it from the larger perspective of tourism, especially when we have got UNESCO status for so many monuments, State should be competent enough to serve tourist from across the country and from the abroad,' said Pradeep Shetty, member of Hotel And Restaurant Association (Western India) – HRAWI. The duty hike is also seen as a way to fund welfare schemes, including the Ladki Bahin initiative. HRAWI also wrote a letter to Deputy Chief Minister Ajit Pawar, referring to the proposed hike, which may cause a sharp rise in the retail prices of alcoholic beverages. It also mentioned the consequences that may cause financial strain on hospitality businesses already struggling with 10% higher license fees, 10% VAT, and rising operational costs. 'The annual excise license fees have also been revised upward by 15%, further compounding the burden on the industry. The final price of the product is likely to become the most expensive in the country, making Maharashtra a less competitive destination for tourists, impacting tourism and hospitality,' said Jimmy Shaw, President of HRAWI, in the letter.

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