Nagpur: In a symbolic and peaceful protest against the recent steep hike in liquor prices, staff at bars and permit rooms across Nagpur have launched a unique agitation, donning white Gandhi caps inscribed with the slogan ‘VAT Hatao, Naukri Bachao’ (Remove VAT, Save Jobs) while serving customers.
The demonstration, spearheaded by the Nagpur Zilla Restaurant Permit Room Association, includes participation from waiters, cooks, managers, and other staffers across over 1,150 establishments in the district. The association warned that the increased liquor prices, driven by higher VAT rates, could cripple the hospitality industry, leading to massive job losses and closure of many small and mid-sized outlets.
Gold Rate
29 July 2025
Bar owners argue that the price hike has already started to impact footfall and daily revenue, making it difficult for them to sustain operations. The association has urged the state government to reconsider the tax structure on liquor to protect employment and the survival of thousands of workers dependent on this sector.
The Maharashtra Government has recently imposed a 60 per cent hike in Excise Duty, a 15 per cent increase in annual FL3 license fees for FY26, and a 10 per cent VAT on Indian Made Foreign Liquor (IMFL) sold at FL3 outlets. This hike has eventually pushed up the prices of various categories of liquor, including whisky, rum, vodka and scotch. The price of mid category whisky that was in the range of Rs 640-780 per 750 ml, has now surged to Rs 880-1,000 while the price of rum jumped from Rs 540-570 per 750 ml to Rs 820-880 per 750 ml. Price of a widely consumed Vodka has also seen a similar jump from Rs 800 per 750 ml to Rs 1,120 per 750 ml.
It is interesting to note that the price hike is significant in mid-premium brands of whisky, rum and vodka that are consumed more than entry level or premium brands. It simply means that now middle class liquor consumers will have to shell out more to quench their thirst for liquor.
It is worth mentioning here that the recent price hike has affected permit rooms and bars more than the liquor shops as the State Government has imposed 10 per cent VAT on IMFL sold at FL3 outlets. To protest against the hike in VAT on liquor, all the permit rooms and bar owners across the State had observed one-day bandh on July 14. More than 6,500 permit rooms and bars in Vidarbha and over 21,000 such facilities in the State remained closed throughout the day. Besides, all the liquor shop owners in the State also observed bandh from morning to 6 pm on the same day.
