Over 11,500 hotel bars to join state-wide shutdown
FL3 outlets and bars will be closed
Alcohol service will be suspended
In a powerful escalation of the State-wide protest against the Maharashtra Government’s liquor tax regime, the Hotel and Restaurant Association (Western India) – HRAWI has appealed and urged over 11,500 hotels to support the ‘Bar Bandh’ and ‘No Alcohol’ call on Monday, 14 July.
Based on HRAWI’s advisory, regional hotel Associations across the State, including Palghar, Vasai, Pune, Nagpur, Aurangabad, Lonavala, Mahabaleshwar and Nashik among others, have come out in full support to shut bars and alcohol service areas inside hotels. Initiated and supported by HRAWI—the Western wing of India’s apex hospitality Association – FHRAI, the coordinated industry-wide shutdown is being described as one of the largest and most unified acts of protest in Maharashtra’s hospitality history.
The protest is a response to the Maharashtra Government’s recent decisions to:
- Increase excise duty by a massive 60 per cent
- Impose a 10 per cent Value Added Tax (VAT) on Indian Made Foreign Liquor (IMFL) sold at FL3 outlets
- Hike annual FL3 license fees by 15 per cent for FY26
“This tax hike is nothing short of an existential threat to the hospitality sector. For many establishments, this triple blow will mean shutting shop permanently. By participating in this protest, our members are not expressing dissent — they are fighting for survival,” says Jimmy Shaw, President, HRAWI.
The tourism and hospitality industry in Maharashtra is a vital pillar of the State’s economy:
- Supports over 20 lakh direct and indirect jobs
- Contributes significantly to the State’s GDP
- Attracts over 15 crore domestic and international tourists annually
Restaurants and bars in hotels form the backbone of tourist and business hospitality infrastructure across key destinations like Mumbai, Pune, Lonavala, Alibaug, Nashik, and more. With the proposed taxes, Maharashtra will become one of the most expensive places in the country to operate a bar, pricing out both operators and tourists.
HRAWI anticipates this massive discrepancy in taxation will lead to:
- Widespread closure of bars and permit rooms
- Loss of over 4 lakh jobs across Maharashtra
- Diversion of tourists to neighbouring, more affordable States
- Spike in unregulated alcohol consumption in public spaces
- Affects the overall tourism potential of the state
“An average tourist spends between ₹2,000/- to ₹5,000/- a day, and a significant part of that is on food and beverage. With these new taxes, Maharashtra is effectively pushing leisure tourism out of reach for Indian families,” adds Shaw.
The decision by 11,500 hotel-based bars to join the shutdown underlines the depth of concern across the hospitality ecosystem. The impact will be felt from five-star city hotels to budget accommodations in tourist towns, all of whom depend on responsible, regulated alcohol service as part of the guest experience.
“This is not just about alcohol — it is about business viability, jobs, and Maharashtra’s standing as a tourism-friendly State. We urge the Government to reconsider these punitive measures immediately,” concludes Shaw.
HRAWI reiterates its appeal to the Government of Maharashtra to:
- Rationalisation of the excessive hikes in excise duty, VAT, and license fees
- Policy relook of the mandatory yearly revision of license fees
- Initiate a constructive dialogue with industry bodies
- Create a policy framework that balances revenue goals with industry sustainability
Until then, July 14th will remain a silent yet powerful protest, where Maharashtra’s hospitality industry will put business on pause to fight for its future.
