Special Correspondent
Mumbai : In a strong protest against the Maharashtra government’s recent tax hikes on the hospitality industry, the Indian Hotel and Restaurant Association (AHAR) has announced a massive statewide shutdown of more than 20,000 licensed hotels and restaurants on July 14.
Calling it a “battle for survival,” AHAR President Sudhakar Shetty declared that the industry has reached a breaking point due to excessive and unjust taxation, which threatens to cripple one of the state’s most employment-generating sectors.
Key Tax Hikes Drawing Ire are VAT on liquor: Doubled from 5% to 10%. Annual license fees: Increased by 15%. Excise duty: Hiked by a staggering 60%
According to AHAR, these tax hikes have pushed an industry worth over ₹1.5 lakh crore to the verge of collapse. Repeated appeals, requests, and representations to the state government have fallen on deaf ears, forcing the industry to take this drastic step.
The hospitality sector in Maharashtra indirectly employs around 20 lakh people and sustains over 48,000 suppliers. “If the industry collapses, the ripple effect will be devastating—not just for us, but for lakhs of families dependent on this sector,” said Shetty.
Cities like Mumbai, Pune, Nashik, Nagpur, and Konkan where tourism plays a major economic role are expected to observe complete participation in the shutdown.
AHAR also pointed out the contradiction in government policies. “While the central government is actively working with the World Bank to transform Mumbai into an international tourism destination, the state’s punitive taxation policies are killing the very industry that supports that goal,” said Shetty.
The association warned that such sharp tax hikes will not just burden businesses but also fuel corruption, as many may resort to unofficial channels to stay afloat. Ironically, this could reduce the state’s overall tax revenue instead of increasing it.
