VIDEO: Hotel Owners Stage Silent Protest In Navi Mumbai Against Excise Duty Hike and VAT Changes

Navi Mumbai: Members of the Navi Mumbai Hotel Owners Association staged a silent protest on Monday, July 14, at Chhatrapati Shivaji Maharaj Chowk in Vashi. The protest targeted the Maharashtra Government over the recent hike in excise duty, the abolition of VAT exemptions, and several other pending issues.

In a coordinated move, over 20,000 bars across Maharashtra shut operations on July 14 as part of a statewide bandh called by the Association of Hotels and Restaurants (AHAR). The bandh is a protest against what AHAR terms the government’s "relentless and unjust" tax hikes on the hospitality sector, an industry valued at Rs 1.5 lakh crore and now, according to AHAR.

The protest follows several ignored appeals from the industry, leaving AHAR with no choice but to take what it describes as an extreme yet necessary step for survival, as reported.

AHAR is objecting to multiple policy changes, including a VAT on liquor increased from 5 per cent to 10 per cent, a 15 per cent hike in annual licence fees, and a staggering 60 per cent rise in excise duty within just 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 president of the AHAR, Sudhakar Shetty, mentioned that, "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." Also added that members across Mumbai, Pune, Nashik, Nagpur, and Konkan have confirmed full participation.

These cumulative tax increases, paired with ongoing post-COVID recovery struggles, have made operations unviable for many businesses. AHAR has warned that these conditions could lead to widespread closures of small and mid-sized establishments, triggering job losses and a potential rise in illegal 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.”