Liquor Bandh in Maharashtra: Over 20,000 Bars to Shut on July 14 in Protest Against Tax Hike

More than 20,000 bars and licensed permit rooms across Maharashtra will remain shut on Monday, July 14, in protest against steep tax hikes imposed by the state government on liquor. The Indian Hotel and Restaurant Association (AHAR) announced the state-wide bandh, calling the tax measures “draconian.” As reported by News18, the protest stems from increases including a 10% VAT on liquor, a 15% surge in annual licence fees, and a 60% hike in excise duty—all within the last year. AHAR President Sudhakar Shetty said, “Entire Maharashtra bars will remain shut against the state government’s draconian taxation," reported News18.

Bars and permit rooms across major cities such as Mumbai, Pune, Nagpur, Nashik, and the Konkan region have confirmed complete participation. No alcohol will be served in these establishments on July 14. AHAR, as cited by News18, said the hospitality sector is “bleeding” due to these financial pressures and that repeated appeals to the government have gone unanswered. “On July 14, every bar and permit room in the state will be shut in protest,” Shetty said, as reported by News18. The organization claims the Rs 1.5 lakh crore liquor industry is now on the brink of collapse due to unsustainable policy measures.

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Job Losses and Liquor Smuggling Fears Emerge

Support for the bandh has also come from other key bodies, including the National Restaurant Association of India (NRAI), the Hotel and Restaurant Association of Western India (HRAWI), and several affiliated and unaffiliated hospitality groups in Maharashtra. According to the report, AHAR claims the tax hikes—combined with the ongoing post-COVID recovery struggles—have rendered the business model unviable for thousands of small and medium establishments. “These draconian hikes are the final nail in the coffin,” AHAR said. It also warned that unchecked taxation could lead to mass unemployment and an increase in illegal liquor smuggling from bordering states.

HRAWI President Jimmy Shaw expressed strong concern over the state’s approach. Shaw said, “We stand united with our fraternity members across Maharashtra in expressing our deep concern over these regressive policy measures," reported News18. He added that implementing such measures could further weaken an already fragile business ecosystem. The bar and permit room industry directly and indirectly supports over 20 lakh jobs and is connected to 48,000 vendors. According to industry representatives quoted by News18, if the government does not roll back these hikes, Maharashtra’s hospitality landscape could face irreversible damage.