Nagpur: It’s not an official dry day, but Maharashtra certainly feels like one. Over 20,000 bars, pubs, and permit rooms across the state downed shutters on Monday, July 14, in a massive protest against what the hospitality sector has dubbed a “draconian” liquor tax regime. The shutdown, branded as a ‘Bar Bandh’, was led by the Association of Hotels and Restaurants (AHAR), marking one of the biggest industry-led protests in recent times.
From Mumbai’s buzzing nightlife hubs to Nagpur’s neighbourhood watering holes, the bandh was near total. In cities like Pune, Nashik, and coastal Konkan, too, customers found bars closed and lights out — not for lack of spirits, but in protest of rising costs that the industry says are crippling their survival.
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15 july 2025
At the heart of the protest is a steep and sudden tax burden:
• Excise duty hiked by 60%
• VAT on liquor doubled from 5% to 10%
• Annual license fees increased by 15%
All these measures, according to AHAR, were introduced within a year without adequate industry consultation, pushing already-struggling businesses to the edge. The association claims the Rs 1.5 lakh crore hospitality industry, which employs lakhs and contributes significantly to state revenues, is now locked in a “battle for survival.”
“Triple tax tsunami”
Speaking to reporters, AHAR President Sudhakar Shetty said: “Our repeated pleas to the government have fallen on deaf ears. This is not just a tax hike — this is a triple tax tsunami that threatens to wash away thousands of small establishments. From Mumbai to Nagpur, we are united in saying: enough is enough.”
He also pointed out that many businesses are still recovering from pandemic-era losses, and the new tax regime has only worsened their financial strain.
The protest has found strong participation in Maharashtra’s urban and semi-urban hospitality hubs. In Nagpur, bar owners expressed solidarity and locked their premises in protest. “Customers are unhappy, but we are more worried about shutting down permanently if this continues,” said one bar owner in Sitabuldi.
Some restaurant and bar associations in smaller towns also joined the protest in moral support, though they couldn’t afford a full-day closure due to local constraints.
Industry stakeholders insist that they are not against taxation, but demand a reasonable and phased approach. Many bar owners complain that the VAT hike directly hits consumers, making liquor unaffordable and impacting sales. “We’re losing customers to bootleggers and illegal joints,” one Mumbai-based bar manager told a local channel.
The state government, however, is yet to issue an official response to Monday’s bandh.
What’s Next?
AHAR has hinted that this may just be the beginning. If the government continues to remain unresponsive, the association is mulling a longer statewide strike and may even approach the courts. Stakeholders are also planning to meet key ministers in the coming days.
Meanwhile, for tipplers in Maharashtra — no cheers today, and perhaps even tougher times ahead if the standoff continues.
