In a major escalation of protests against Maharashtra Government’s recent hike in liquor taxes, the Hotel and Restaurant Association of Western India (HRAWI) has announced a State-wide ‘Bar Bandh’ on Monday, July 14, urging over 11,500 hotels and restaurants to halt alcohol service for the day. This unified shutdown marks one of the largest industry-led protests in the history of Maharashtra’s hospitality sector.
The move comes in response to the Government’s recent liquor taxation decisions, which include a 60% increase in excise duty, the introduction of a 10% Value Added Tax (VAT) on Indian Made Foreign Liquor (IMFL) at FL3 outlets, and a 15% hike in annual FL3 license fees for the financial year 2025–26. According to HRAWI, these hikes are financially devastating for bars, restaurants, and hotels, threatening the survival of many establishments.
Regional hospitality associations from cities and towns like Palghar, Vasai, Pune, Nagpur, Aurangabad, Lonavala, Mahabaleshwar, and Nashik have extended full support to HRAWI’s call, ensuring widespread participation in the shutdown. The initiative is also backed by the Federation of Hotel and Restaurant Associations of India (FHRAI), further underscoring the industry-wide concern.
“This tax hike is nothing short of an existential threat to the hospitality sector,” said Mr. Jimmy Shaw, President of HRAWI. “This is not just dissent — this is a fight for survival. If not rolled back, these measures could result in permanent closures, loss of livelihoods, and a collapse of the alcohol-serving segment in Maharashtra.”
The hospitality sector in Maharashtra is a critical contributor to the state’s economy, supporting over 20 lakh direct and indirect jobs, contributing significantly to the state’s GDP, and drawing more than 15 crore tourists annually. Restaurants and bars within hotels form an essential part of this ecosystem, offering services vital to both leisure and business travellers.
HRAWI warns that the steep liquor taxation will likely lead to the closure of thousands of bars and permit rooms, resulting in the loss of over 4 lakh jobs, a decline in tourism, and the rise of unregulated alcohol consumption in public spaces. The higher costs will also make Maharashtra one of the most expensive states in India for alcohol consumption, prompting tourists to consider more affordable neighbouring destinations.
“An average tourist spends between Rs.2,000 to Rs.5,000 per day, with a substantial share going toward food and beverages. These hikes will make travel to Maharashtra unaffordable for many Indian families,” Mr. Shaw added.
The protest will impact establishments across all segments from luxury five-star hotels in Mumbai and Pune to budget accommodations in tourist towns like Lonavala and Mahabaleshwar. The united front reflects deep concern across the hospitality industry about the long-term impact of the government’s taxation policy.
HRAWI has called on the Maharashtra Government to immediately: Rationalise the excessive excise duty, VAT, and license fee hikes. Reconsider the policy of annual automatic license fee revision. Initiate constructive dialogue with industry representatives. Develop a balanced framework that supports both revenue goals and industry sustainability
Until then, the hospitality sector in Maharashtra will observe a silent yet powerful protest on July 14, putting business on hold to demand a fair and sustainable future.
