Bar Owners' Protest In Maharashtra: Booze Bandh On July 14

Until recently the state government used to impose dry days. Now owners of bars across Maharashtra have declared a dry day on July 14.

In a coordinated move, over 20,000 bars across Maharashtra will shut operations on July 14 as part of a statewide bandh called by the Association of Hotels and Restaurants (AHAR). The bandh is in protest against the Maharashtra government's “relentless and unjust” tax hikes on the hospitality sector, which AHAR says are pushing the ₹1.5 lakh crore industry to the edge of collapse.

The move comes after repeated appeals by the industry were met with silence, forcing AHAR to take the extreme step in what it describes as a battle for survival. 

AHAR is protesting against VAT on liquor hiked from 5% to 10%, a 15% increase in annual licence fees and a 60% spike in excise duty in a span of one year. The bandh is a reaction to what AHAR calls a “triple tax tsunami” that has hit the industry in less than a year. 

“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,” said Sudhakar Shetty, President, AHAR. Adding that members across Mumbai, Pune, Nashik, Nagpur, and Konkan have confirmed full participation.

These hikes, clubbed with ongoing post-COVID recovery challenges, have rendered the business model unviable for thousands of establishments. AHAR warns that this 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.

“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. “These draconian hikes are the final nail in the coffin. From excise renewal fees to VAT and excise duty—our survival is at stake. If the government does not roll back these hikes, we fear mass closures and irreversible damage to Maharashtra’s hospitality landscape.”

These huge hike in various taxes is likely to encourage more corrupt practices, resulting into a sharp revenue loss to the government as well.

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 . The industry also plays a vital role in Maharashtra’s tourism-driven economy, specially in cities like Mumbai and Pune.

AHAR has raised serious concerns over the timing of these hikes—especially when the Central Government, with World Bank collaboration, is working to position Mumbai as India’s leading tourist destination. “Instead of incentivizing growth, the state government seems determined to shut us down,” said Shetty.

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The bandh on July 14 is likely to have a significant impact across the state, especially in urban centres where bars, lounges, and permit rooms are part of the city’s cultural and economic fabric.

AHAR has urged policymakers to engage with the industry urgently before the damage becomes irreparable.  Said Shetty “We have shown restraint, we have waited, and we have appealed. Now, we are forced to make ourselves heard through this bandh.”

National Restaurant Asociation of India (NRAI), Hotel and Restaurant Association ( Western India) HRAWI, and all affiliated as well as non affiliated associations of Hotel and Restaurants in Maharashtra have extended their support to the July 14 bandh.