Mumbai: Bar owners enforce dry day to protest tax surge

Bars across the city remained shut on Monday after the Association of Hotels and Restaurants (AHAR) declared a bandh last week, in protest against what they called an ‘unjust’ hike in value-added tax (VAT), licence fees, and excise duty.

General Secretary of AHAR, Vijay K Shetty, told mid-day, “All the 19,200 permit rooms and bars have complied with our protest and are observing a dry day today. We want the authorities to understand how serious we are about our demands, as complying with the government’s tax hikes would result in huge losses for our industry.”

Felicia Restaurant & Bar in Dhobi Talao

The association earlier stated that VAT on liquor has doubled from 5 per cent to 10 per cent, licence fees have increased by 15 per cent, and excise duties have gone up by 60 per cent — hikes they described as ‘draconian’ in nature. The Hotel and Restaurant Association of Western India (HRAWI) has also extended its support to AHAR’s protest. Shetty said, “HRAWI has also been supporting us, as they understand how this will affect our business. We are very happy with the support we are receiving.”

KitKat Family Restaurant & Bar

Shetty further added that they have not yet received any response from the authorities regarding their demands. “We have been busy today (July 14) with the bandh. We are expecting to meet with the excise ministry tomorrow or the day after, and hopefully, they will heed our pleas.” 

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