Latest news with #SudhakarShetty
Time of India
2 days ago
- Business
- Time of India
Taxing time awaits Pune tipplers as permit rooms & bars plan to up menu prices
Pune: Hard times await tipplers with owners of bars and permit rooms in the city making it clear that if state govt does not reverse its nod to revise the excise tax and liquor licence fees, they would pass on the financial burden to their customers. The price of a quarter bottle (180ml) of regular alcohol, currently available for Rs150, is likely to go up byRs90-100 with the state cabinet recently approving a revision in excise taxes. Similarly, liquor prices in permit rooms or bars are expected to rise proportionately, taking into account the increased taxes. "It will, however, not be a standard increase. Different brands will have different price increases," said Sudhakar Shetty, president of Indian Hotel and Restaurant Association. "For premium brands, we estimate a 15-20% increase. For Indian-made foreign liquor (IMFL) and mass brands, the rise could be in the 60-70% bracket," he said. You Can Also Check: Pune AQI | Weather in Pune | Bank Holidays in Pune | Public Holidays in Pune Permit rooms and bars across the state remained closed on Monday in protest against the Maharashtra govt's decision to increase taxes and licence fees. If the industry is to survive, owners are demanding a rollback of VAT, a phased increase in excise duty, and a limited increase in licence fees. Girish Poojari, owner of a restaurant and bar in Kharadi, said: "If a quarter bottle of regular alcohol costs us between Rs150 and Rs300, no one will be willing to pay Rs400-500. Many licences will be surrendered. We will also keep an eye on our business for 1-2 months and do a calculation to see if business is feasible. " Menu prices were likely to go up by at least 15%, said Saili Jahagirdar, owner of a bistro in Kothrud. "If licence fees are reduced, many restaurants can afford alcohol licences. This will also increase state revenues," she said. For smaller permit rooms and bars, the increase in prices will drive away 30-40% of the customers, the operators fear. "We have two options — either to increase the seating capacity or surrender the licence. With high licence fees and taxes, customers will not be able to afford liquor. Rentals, salary costs and overheads are difficult to manage if inflows are less," said an owner of a 150-seater permit room in Dhankawadi. Vishwanath Poojari, who runs a resto bar in Katraj, said, "About 30% of my customers will go to shops if prices are increased substantially. We are waiting for all the brands to finalise price increases before we increase the menu prices." All this could have a cascading impact on employment as many owners said they would be forced to reduce staff strength to manage costs. Ajinkya Udane, co-chapter head, National Restaurant Association of India (NRAI), said: "It (the rise in excise taxes and licence fees) will destroy small permit rooms and bars. At the end of the day, they also have to sustain and do business. Even a small permit room bar will have 15-20 employees." Rajesh Nadkarni, a resident of Karvenagar, said: "We may have to reduce our outings if alcohol prices increase so much. It is cheaper to buy directly from a store as the effective price increase would be less."
Time of India
6 days ago
- Business
- Time of India
Maharashtra bars, permit rooms declare bandh on July 14 to protest tax hikes
Over 20,000 bars and permit rooms across Maharashtra will shut operations on July 14 to protest against the state government's "draconian taxation", said the Indian Hotel and Restaurant Association (AHAR) on Saturday. The bandh is to oppose the state government's tax hikes, including rise in VAT (value added tax) on liquor to 10 per cent, a 15 per cent increase in annual licence fees and a 60 per cent spike in excise duty, in a span of one year, AHAR said in a statement. These tax hikes are pushing the Rs 1.5 lakh-crore industry to the edge of collapse, it said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo "The entire hospitality sector in Maharashtra is bleeding. Our pleas have fallen on deaf ears. On July 14, every bar and permit room in the state will be shut in protest. Entire Maharashtra bars will remain shut against the state government's draconian taxation," AHAR president Sudhakar Shetty said. Members across Mumbai, Pune, Nashik, Nagpur, and Konkan have confirmed full participation, he added. Live Events These hikes, clubbed with ongoing post-COVID recovery challenges, have rendered the business model unviable for thousands of establishments, said AHAR. The move will not only wipe out thousands of small and mid-sized businesses but also lead to mass unemployment and a black market surge in liquor smuggling from neighbouring states, it claimed. "This is not just an economic blow, it is a death blow to an industry that contributes significantly to employment and state taxes," said Shetty. The 20,000-strong permit rooms and bars industry directly and indirectly employs over 20 lakh jobs, and supports a wider ecosystem of 48,000 vendors. National Restaurant Association of India (NRAI), Hotel and Restaurant Association (Western India) - HRAWI, and affiliated as well as non-affiliated associations of hotels and restaurants in Maharashtra have extended their support to the July 14 bandh. The industry also plays a vital role in Maharashtra's tourism-driven economy, especially in cities like Mumbai and Pune, they said. "We stand united with our fraternity members across Maharashtra in expressing our deep concern over these regressive policy measures. If implemented, they will further strain the already fragile business environment and will hurt both consumers and operators. "This peaceful protest is intended to draw urgent attention to the disproportionate impact of the move," HRAWI president Jimmy Shaw said.
Mint
6 days ago
- Business
- Mint
Maharashtra bars, permit rooms declare bandh on July 14 to protest tax hikes
Mumbai, Jul 12 (PTI) Over 20,000 bars and permit rooms across Maharashtra will shut operations on July 14 to protest against the state government's 'draconian taxation', said the Indian Hotel and Restaurant Association (AHAR) on Saturday. The bandh is to oppose the state government's tax hikes, including rise in VAT (value added tax) on liquor to 10 per cent, a 15 per cent increase in annual licence fees and a 60 per cent spike in excise duty, in a span of one year, AHAR said in a statement. These tax hikes are pushing the ₹ 1.5 lakh-crore industry to the edge of collapse, it said. 'The entire hospitality sector in Maharashtra is bleeding. Our pleas have fallen on deaf ears. On July 14, every bar and permit room in the state will be shut in protest. Entire Maharashtra bars will remain shut against the state government's draconian taxation,' AHAR president Sudhakar Shetty said. Members across Mumbai, Pune, Nashik, Nagpur, and Konkan have confirmed full participation, he added. These hikes, clubbed with ongoing post-COVID recovery challenges, have rendered the business model unviable for thousands of establishments, said AHAR. The move will not only wipe out thousands of small and mid-sized businesses but also lead to mass unemployment and a black market surge in liquor smuggling from neighbouring states, it claimed. 'This is not just an economic blow, it is a death blow to an industry that contributes significantly to employment and state taxes,' said Shetty. The 20,000-strong permit rooms and bars industry directly and indirectly employs over 20 lakh jobs, and supports a wider ecosystem of 48,000 vendors. National Restaurant Association of India (NRAI), Hotel and Restaurant Association (Western India) – HRAWI, and affiliated as well as non-affiliated associations of hotels and restaurants in Maharashtra have extended their support to the July 14 bandh. The industry also plays a vital role in Maharashtra's tourism-driven economy, especially in cities like Mumbai and Pune, they said. 'We stand united with our fraternity members across Maharashtra in expressing our deep concern over these regressive policy measures. If implemented, they will further strain the already fragile business environment and will hurt both consumers and operators.
Time of India
6 days ago
- Business
- Time of India
Excise policy protest: Maharashtra bars, permit rooms to shut on July 14; Industry body calls tax hikes 'draconian'
More than 20,000 bars and permit rooms across Maharashtra will observe a one-day bandh on July 14 to protest what the hospitality sector has called 'draconian' tax hikes by the state government, the Indian Hotel and Restaurant Association (AHAR) said on Saturday. The association said the shutdown is aimed at opposing multiple tax increases imposed over the past year — including a 10% VAT on liquor, a 15% hike in annual licence fees, and a 60% surge in excise duty — which it claims are threatening the survival of the Rs 1.5 lakh-crore industry, PTI reported. 'The entire hospitality sector in Maharashtra is bleeding. Our pleas have fallen on deaf ears. On July 14, every bar and permit room in the state will be shut in protest,' AHAR president Sudhakar Shetty said in a statement. He added that members from Mumbai, Pune, Nashik, Nagpur, and Konkan have confirmed participation. AHAR warned that the aggressive taxation regime, coupled with post-COVID recovery challenges, is making the business model unsustainable for thousands of establishments. 'This is not just an economic blow, it is a death blow to an industry that contributes significantly to employment and state taxes,' said Shetty. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dementia Has Been Linked To a Common Habit. Do You Do It? Memory Health Click Here Undo The permit room and bar segment, which supports over 20 lakh jobs both directly and indirectly, also sustains a wider network of nearly 48,000 vendors across Maharashtra. The industry fears the hike in liquor-related levies could lead to mass unemployment and a spike in black-market alcohol smuggling from neighbouring states, further weakening state revenues. Several major industry bodies, including the National Restaurant Association of India (NRAI) and Hotel and Restaurant Association (Western India) – HRAWI, along with various affiliated and unaffiliated hotel and restaurant associations across the state, have extended support to the bandh. 'We stand united with our fraternity members across Maharashtra in expressing our deep concern over these regressive policy measures. If implemented, they will further strain the already fragile business environment and hurt both consumers and operators,' said HRAWI president Jimmy Shaw. AHAR urged the Maharashtra government to roll back the tax increases and initiate discussions with stakeholders to avoid long-term damage to one of the state's key employment-generating and tourism-supporting sectors. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
7 days ago
- Business
- Time of India
To protest ‘death blow' by 3 tax hikes, 20k bars in state to shut on Monday
Mumbai: Be prepared to be refused liquor in the city's restaurants and bars on Monday. For, over 20,000 bars and permit rooms in the state will shut operations as part of a one-day strike to protest the "draconian tsunami" of three tax hikes in a year. Accusing govt of killing jobs, destroying tourism prospects and ignoring the hospitality industry's pleas, Association of Hotels and Restaurants (AHAR), the apex body of restaurants and bars in the state, said the "relentless and unjust" tax hikes are pushing the Rs 1.5-lakh crore industry to the brink of collapse. "The entire hospitality sector in Maharashtra is bleeding," said Sudhakar Shetty, president of AHAR. You Can Also Check: Mumbai AQI | Weather in Mumbai | Bank Holidays in Mumbai | Public Holidays in Mumbai Within the past year, VAT on liquor was hiked from 5% to 10%, then annual license fees raised by 15%, and more recently, excise duty was increased by 60%. AHAR said these hikes, clubbed with ongoing post-Covid recovery challenges, have rendered the business model unviable for thousands of establishments. It warned that they will not only wipe out thousands of small and mid-sized businesses but also lead to mass unemployment and a black market surge in liquor smuggling from neighbouring states. The 20,000-strong permit rooms and bars directly and indirectly employ over 20 lakh people and support a wider ecosystem of 48,000 vendors, it said. "The hikes are not just an economic blow; they will serve a death blow to an industry that contributes significantly to employment and state taxes," said Shetty. "These draconian hikes are the final nail in the coffin... Our survival is at stake." National Restaurant Association of India, Hotel and Restaurant Association (Western India), and affiliated and non-affiliated associations of Hotels and Restaurants in Maharashtra have extended support to the strike.
