Maharashtra Hotel Association Stages Strike Against Alcohol Duty Hike

Speedy Summary

• Maharashtra’s hospitality sector undertook a Statewide “No Alcohol” strike on July 14, 2025, led by the Hotel and Restaurant association of Western India (HRAWI).
• The protest was against the Maharashtra government’s decision to increase excise duty on alcohol by 60%, raise annual FL3 license fees by 15%, and impose a 10% VAT on Indian-Made Foreign Liquor (IMFL) sold at licensed outlets.
• HRAWI described the price hike as detrimental to buisness, tourism prospects, and financial stability within the hospitality industry.
• pradeep Shetty from HRAWI highlighted concerns about potential negative impacts on tourism following UNESCO designations for monuments in Maharashtra.
• The government reportedly intends to use revenue from the duty hike for welfare schemes such as the Ladki bahin initiative.
• HRAWI wrote officially to Deputy CM Ajit Pawar, emphasizing hardships faced due to increased regulatory costs while projecting an uncompetitive market environment in Maharashtra compared to other states.

Indian Opinion Analysis
The excise duty increase in Maharashtra amplifies an ongoing challenge for its hospitality sector already facing elevated operational costs and pandemic-era recovery struggles. While revenue generation is integral for funding welfare schemes like Ladki Bahin, striking a balance between taxation policies and tourism growth appears crucial given growing international attention brought by UNESCO recognitions of local sites.High liquor prices risk positioning Maharashtrian establishments as less competitive compared with peer states like Goa-affecting both inbound tourist flow and consumer behavior domestically. The strike illuminates broader discord between economic policy designs geared toward public welfare versus immediate industry ramifications-with direct implications for job creation within hospitality-dependent zones statewide.

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