In protest against the recent hike in VAT on liquor, permit room and bar owners across Maharashtra have called for a one-day bandh on July 14. Over 21,000 establishments across the state including more than 6,500 in Vidarbha will remain shut for the entire day. In addition, all liquor shops in the state will observe a shutdown from morning till 6 pm in solidarity.
According to a media report, the Indian Hotel and Restaurant Association (AHAR) has called for the bandh to protest against the steep and unfair tax hikes recently imposed on the hospitality industry.
While speaking at a press conference in the city on Friday, Rajeev Jaiswal, President of the Nagpur District Restaurant Permit Room Association, said, “We are protesting the recent VAT hike on liquor. It has been raised from 5% to 10%, along with a 15% rise in annual license fees and a 60% increase in excise duty within just one year.”
Jaiswal explained that the government had initially set a 5% VAT on permit rooms and bars, but this was doubled to 10% starting November 1, 2023. “Along with that, the license renewal fees have also gone up by 15%. These rising taxes have been creating financial strain, especially on small and medium-sized permit room and bar owners,” he said.
In addition to the VAT and license fee hike, the government has also raised the excise duty on liquor by a steep 150%, further worsening the burden on the industry, Jaiswal added.
He said permit room and bar owners are demanding that the 10% VAT be scrapped and instead levied at the manufacturing level, to ease pressure on retail businesses.
On July 14, the protesting permit room and bar owners will assemble at Samvidhan Chowk in Nagpur and march to the District Collector’s office in Civil Lines. The rally is part of their statewide agitation against the recent tax hikes.
During the press conference, Vice Presidents Prashant Ahirkar and Arun Jaiswal, along with Secretary Naveen Bawankar and other members of the Nagpur District Restaurant Permit Room Association, were also present.
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