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Hospitality Sector Vehemently Opposes The 60% Excise Duty Hike, 10% VAT On IMFL Sales & 15% Increase In Annual Licence Fees
Mumbai, July 12: The Hotel And Restaurant Association (Western India) – HRAWI has extended its full support to the silent protest being called across Maharashtra on Monday, 14th July 2025 in opposition to the recent draconian hike in excise duty by a whopping 60 per cent in addition to an imposition of 10 per cent Value Added Tax (VAT) on Indian Made Foreign Liquor (IMFL) sales at FL3 outlets and a 15 per cent hike in annual license fees for FY26. In a show of solidarity, HRAWI has urged all its Maharashtra-based members to join the collective industry-wide protest by voluntarily keeping bars closed for the day and suspending alcohol service at restaurants as a symbolic act of dissent.
“The hospitality industry in Maharashtra is already reeling under operational and regulatory challenges. The recent hike in excise duty coupled with the additional 10 per cent VAT on FL3 liquor sales and 15 per cent increase in annual licence fee is not just excessive; it is punitive. This protest is our collective cry for reason. We request the Government to review this decision in the interest of economic stability, employment and ease of doing business,” says Mr Jimmy Shaw, President, HRAWI.
The protest has received unanimous backing from leading hotel and restaurant Associations across the State. The unified protest condemns the Maharashtra Government’s relentless and unjust tax hikes on the hospitality sector, a move that threatens the existence of the State’s Rs.1.5 lakh crore industry.
“We stand united with our fraternity members across Maharashtra in expressing our deep concern over these regressive policy measures. If implemented, they will further strain the already fragile business environment and will hurt both consumers and operators. This peaceful protest is intended to draw urgent attention to the disproportionate impact of the move. As always, HRAWI reaffirms its commitment to constructive dialogue and urges the State Government to engage with industry stakeholders for a fair and practical resolution,” concludes Mr Shaw.
About the Hotel And Restaurant Association (Western India) – HRAWI: -
The Hotel And Restaurant Association (Western India) – HRAWI is a 74 years old Association of Hotels and Restaurants in Western India. Its members include Restaurants and Hotels up to 5-Star Deluxe categories. With membership base spread across Western India, HRAWI covers Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, Goa and Union Territory of Dadra and Nagar Haveli and Daman and Diu, and is considered to be the voice of the Hospitality Industry. The association is part of the national body of the Federation of Hotel & Restaurant Associations of India (FHRAI), located in New Delhi, which was originally founded in Mumbai in 1950 by the late Mr J.R.D. Tata.