The hotel and restaurant industry in Maharashtra has come out openly against the government’s tax policies. The Indian Hotel and Restaurant Association has announced a state-wide bandh on Monday, July 14, 2025. Under this bandh, all permit rooms and bars across Maharashtra will remain completely closed. Industry associations allege that the government has recently doubled the VAT on liquor, due to which the financial burden on the hotel and bar industry has increased manifold. In addition, the industry has been shaken by a 15% increase in license fees and a massive 60% increase in excise duty. AHAR and other associations say that this tax hike is not only detrimental to business, but has become a direct threat to the survival of small and medium-sized hotels and bars. This crisis can affect thousands of jobs and the livelihood of lakhs of families. The AHAR president issued a statement saying that the government’s recent tax policy is extremely unfair. We have informed the administration about this issue several times, but have not received any satisfactory response. That is why we have been forced to decide on a state-wide bandh. The bandh announced on July 14 will be effective across Maharashtra. During the bandh, all permit rooms, bars and hotels and restaurants serving liquor will remain completely closed. The organization has made it clear that this bandh will be peaceful but if the government still does not pay attention, the agitation may turn more violent. The impact of the bandh will be seen in major cities like Mumbai, Pune, Nashik, Aurangabad, Nagpur as well as rural areas. Other organizations related to hotels, bars and restaurants have also said that they will support this call of AHAR. AHAR says that this bandh is not a political movement, but a fight for the survival of the industry. A statement issued by the association said, we are demanding a fair tax policy and a stable business environment from the government. If we are not heard, both the direction and intensity of the agitation may change.
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