Restaurant India News: Hospitality Industry Slams Maharashtra’s 60 Percent Liquor Duty Hike

In response to the recent sharp rise in excise duties and additional taxation on liquor in Maharashtra, the Hotel and Restaurant Association (Western India) – HRAWI has declared its full support for the silent protest scheduled across the state on Monday, July 14, 2025.

The protest has been called to oppose the state's decision to hike excise duty on Indian Made Foreign Liquor (IMFL) by 60 percent, impose a 10 percent Value Added Tax (VAT) at FL3 outlets, and increase the annual license fee for FY26 by 15 percent.

In a formal appeal to its members, HRAWI has urged hotels and restaurants across Maharashtra to voluntarily shut down bars and stop serving alcohol for the day. The protest aims to draw attention to what industry leaders describe as unreasonable and damaging tax policies.

“The hospitality industry in Maharashtra is already reeling under operational and regulatory challenges. The recent hike in excise duty coupled with the additional 10 percent VAT on FL3 liquor sales and 15 percent increase in annual licence fee is not just excessive; it is punitive. This protest is our collective cry for reason. We request the Government to review this decision in the interest of economic stability, employment and ease of doing business,” says Jimmy Shaw, President, HRAWI.

The move has received wide support from leading hotel and restaurant associations across Maharashtra. The sector, valued at Rs 1.5 lakh crore, sees this as an existential threat to an already pressured business environment.

“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. As always, HRAWI reaffirms its commitment to constructive dialogue and urges the State Government to engage with industry stakeholders for a fair and practical resolution,” concludes Shaw.

The protest marks a rare industry-wide act of dissent, signaling just how deep the unrest runs within Maharashtra’s hospitality ecosystem. Stakeholders argue that the cascading cost impact will affect not just businesses but also consumer sentiment and job creation.