Nagpur: The Nagpur District Restaurant Permit Room Association has issued a stern warning of launching an indefinite strike from August 24, protesting what they describe as crippling taxation and fee hikes that are pushing their businesses to the brink of collapse.
At a press conference held on Wednesday at Hotel Darshan Towers, office-bearers of the Association lambasted the government for imposing inflated Value Added Tax (VAT), steep license renewal fees, and unrealistic excise duties, which they claim are not only throttling the permit room trade but also fuelling illegal liquor consumption across Maharashtra.
Gold Rate
18 Aug 2025
“Since 2011, an additional 10% VAT has been imposed on permit rooms, and recent hikes have only worsened the situation. Customers are now avoiding our establishments and turning to wine shops, roadside eateries, dhabas, and even public spaces for liquor. This is not just an attack on our livelihood, it’s a threat to law and order and a direct revenue loss to the State,” the Association asserted.
The Association recalled its day-long strike and dharna on November 16, 2023, when permit room owners had already highlighted the tax burden. Despite repeated appeals since then, no relief has been offered. Their key demand is that the 10% VAT be abolished or levied at the production source to ensure transparency, eliminate corruption, and create uniform taxation.
Adding to their woes, the Association hit out at the 15% hike in annual license renewal fees, which now stand at Rs 10.5 lakh in cities. “License fees should be treated as a service charge, not as a money-making tool for the government,” the members said.
The Association also flagged the recent 60% increase in Excise Duty from June 2025, warning that it has already triggered rampant smuggling from Goa and Madhya Pradesh while simultaneously encouraging the production of counterfeit liquor locally.
Rural consumers, already burdened by higher liquor costs, are worst hit. Farmers and small landholders who sold their land to set up permit rooms now face a “double crisis” due to heavy taxation and rising costs, the association claimed.
Calling the government’s taxation policy “disastrous and short-sighted,” the Association warned that unless immediate relief is provided, Nagpur’s permit rooms will down shutters indefinitely from August 24, in what could spiral into a Statewide crisis for the hospitality and liquor trade.
The Association’s President Rajeev Jaiswal, Bhagwat Gabhne from Washim, Kishore Gharad from Buldhana, Nitin Mohod from Amravati, Parvinder Singh Bhatia from Chandrapur, and many others were present at the press conference.
