Maharashtra Bars and Restaurants to Go on Strike on July 14 Over Steep Tax Hikes

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Mumbai, July 13, 2025: The Indian Hotel and Restaurant Association (AHAR) has called for a statewide strike on July 14, with permit rooms and bars across Maharashtra shutting down to protest against the government’s steep tax increases on the hospitality sector. The move comes in response to a doubling of VAT on liquor, a 15% hike in license fees, and a 60% surge in excise duty, which industry leaders say are pushing businesses to the brink.

Why Are Hotels and Restaurants Protesting?

In a post on X (formerly Twitter), AHAR (@AharAssociation) highlighted the severe financial strain caused by the new tax policies, warning that small and mid-sized establishments are at risk of shutting down.

“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 against the government’s draconian taxation,” said Sudhakar Shetty, President of AHAR, in a statement to Deccan Herald.

Shetty added that repeated appeals to the government went unanswered, leaving the industry with no choice but to resort to a complete shutdown of permit rooms and bars to demand relief.

Expected Impact of the Strike

The July 14 strike will see thousands of liquor-serving establishments across Maharashtra remaining closed, disrupting business operations and signaling strong opposition to the tax hikes. AHAR has urged all industry stakeholders—including restaurant owners, workers, and suppliers—to join the protest.

The association warns that if the tax policies remain unchanged, mass closures of bars and restaurants could follow, leading to widespread job losses and economic damage to the hospitality sector.