Liquor VAT: Maharashtra government raises tax by 5% for bars, restaurants

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Maharashtra: Training aircraft crashes near Gojubavi village in Pune, 2 injured Hoteliers have expressed concerns over the recent rise in excise license fees imposed by the state government, which has added to the overall cost of liquor for consumers, the report said. They are of the belief that this policy shift could have a significant impact at a time when states are competing to generate revenue and attract tourists. They added that the rise in VAT for liquor consumed within bars may lead customers to seek more affordable alternatives.

Among such alternatives include off-premise venues like building terraces, parks, beaches, parked vehicles, or street corners. This, in turn, could pose a challenge to law and order enforcement for the state administration, industry sources told the paper. Also Read: From Jack Daniel's to Glenlivet, prices of liquor go up in Gurugram.

Details here The Maharashtra government has proposed allowing permit rooms to maintain stock for retail sale of liquor bottles or over-the-counter sales, a change that is expected to benefit bars in the industry, as per the report. Pradeep Shetty, president of Hotels and Restaurants of Western India (HRAWI) told TOI that the increase came as a surprise amid hike in yearly excise fees, adding that this would push prices in bars and restaurants. "We are in the age where states are competing with each realising the power of tourism in driving economies resulting in reduction of excise duties.

Goa, Chandigarh and Haryana are few such examples," Shetty said. The HRAWIs members include thousands of hotels and high end restaurants. Also Read: No impact on liquor prices despite change in GST on key ingredient Sukesh Shetty, president of AHAR, believes the hike is