Maharashtra: Liquor in bars, clubs to become more expensive, here’s why
The Maharashtra government has increased the VAT by 5 per cent for permit room liquor service, making it a total of 10 per cent.
Maharashtra: Starting from November 1, patrons enjoying liquor in bars, lounges, and clubs in Maharashtra will notice a hike in prices. The state government of Maharashtra has raised the value-added tax (VAT) by 5 percent for permit room liquor service, bringing it to a total of 10 percent. Fortunately, this change will not affect the prices of alcohol for on-counter sales.
This decision, announced by the government, is expected to have implications for the cost of liquor for customers. Hoteliers have expressed their concerns, particularly in light of the recent rise in licence fees imposed by the government, which has already driven up alcohol prices.
Hoteliers, however, question the timing of the VAT increase. They argue that many states are actively reducing excise duties to boost tourism and stimulate their economies, making this move surprising.
Pradeep Shetty, the president of the Hotels and Restaurants of Western India (HRAWI), commented on the matter, saying, “The increase is quite surprising, as the same in the backdrop of the increase in yearly excise fees will mean that prices in restaurants and bars will go up.”
Industry sources predict that consumers may opt for more cost-effective options outside the premises of bars, such as consuming drinks on terraces, in parks, on beaches, or in parked cars, due to the decision to raise VAT.
Additionally, reports suggest that the state administration is contemplating a new excise policy. This policy would allow the sale of bottled liquor in bars and permit rooms while linking prices to the alcohol content of beverages.
Ms Kalinga