Hike in Excise duty on Alcohol Or Liquors is an intended move to raise funds for the State level projects and other election promises. These reforms are part of every government strategy which aims to generate additional revenues to fund key public initiatives health care sectors, urban and rural developments projects.
But the Liquor industry is the only sector that has been Targeted by the government policies with No Compassion towards the already burden liquor industry. We, Hoteliers are given a Industry Status but No such rebates or any kind of soft loans, or any assisted aid in terms of Ease of doing business are ever provided to the hotel industry. We have survived on our own until now and shall try to survive in the coming years too or till we perish on the uncalled decisions by the said government.
2) Value Added Tax
In a move to address fiscal challenges and support economic recovery the Ministry of Finance has announced Value Added Tax. Tax from Old rate of 5% to 10% have been increased has been a part of the broader economic recovery aimed at ensuring financial stability without even consulting the concerned direct parties such as Hotel associations of Maharashtra Or any related members who can explain their part of our difficulties of the liquor Industry. Value added tax rates will apply to a wider range of goods and services which are directly impacting the Consumers which is a burden to them and impacting in a long run for consumers as well as the Hoteliers.
3) Yearly Renewal of Excise Fees
Yearly excise fees are impacting the most to all the permit room holders as previously the increase in excise fees was according to the Census which was done every Ten years.
However the Finance Ministry had made norms in increasing License fees every year by 10% and to top it all this fiscal year 2025 -26 there has been an increase of 15 % citing a short fall in revenues and State Debts.
Our Suggestions to Government policy makers
A) Immediate Abolishment of Value AddedTax, (VAT) B) Adjust the Yearly Excise Renewal Fees in accordance to the general census. C) Excise Duty on the first point of sale with minimum hike. D) Suggestion and guidance from the Concern Hoteliers and Permit room holders Associations as they are in better position to address the grievances bear by the Hotel Industry. E) Demarcation of the hotel to serve liquor to the consumers and drinking permit to consume liquor in the hotel which is an age old rules and regulations imposed to liquor industry. F) The current situation is not in favour of the Liquor Industry with No other alternative Excise Permit holders will have to move to streets and hold protest regarding the hike and surrendering of their permits books to the Excise departments as no other alternative will be left to discuss. This will result in Loss of Revenues, Increase in Illegal activities, Illicit liquors and total lawlessness in the state. Pandemic was already a blow to the hotel industry with NO Support and Sympathy towards the liquor industry and No Political support for the Liquor Industry which is one of the Highest Taxed and highest revenue generators for the government.
– With Regards Navi mumbai hotel owners association, (NMHOA).
