The Indian Hotel and Restaurant Association (AHAR) warns of the collapse of Maharashtra's hospitality sector due to recent tax hikes, calling them a 'tsunami of unjust taxes.'
Tax increases include a doubling of VAT on liquor, a 15% rise in license fees, and a 60% hike in excise duty, adding significant financial strain on the industry.
The Maharashtra hospitality sector, with over 19,000 licensed bars and permit rooms employing about 4 lakh people, faces the risk of rising tax evasion, smuggling, reduced affordability for consumers, and economic downturn.
AHAR urges the government to roll back the tax hikes and engage with industry stakeholders to prevent further damage to the sector and the state's economy.