Published By: Sheen Kachroo
Last Updated: October 25, 2023, 22:13 IST
HRAWI, on Wednesday urged the Maharashtra authorities to roll again the 5 per cent improve (File photograph: News18)
On October 22, the Maharashtra authorities raised VAT for allow room liquor service by 5 per cent, ensuing in a brand new whole charge of 10 per cent, in accordance to the state authorities notification
The Hotel And Restaurant Association (Western India) – HRAWI, on Wednesday urged the Maharashtra authorities to roll again the 5 per cent improve in Value Added Tax (VAT) on liquor served at bars and eating places throughout the state.
On October 22, the Maharashtra authorities raised VAT for allow room liquor service by 5 per cent, ensuing in a brand new whole charge of 10 per cent, in accordance to the state authorities notification.
HRAWI in a illustration submitted to the chief minister Eknath Shinde, deputy chief minister and finance minister Ajit Pawar, and tourism minister Girish Mahajan requested the rollback of the 5 per cent improve in VAT on liquor served at bars and eating places throughout the state.
Expressing concern and shock at the sudden improve in VAT on liquor, HRAWI has said that the numerous hike in taxes can have hostile results on the hospitality trade, significantly on eating places and bars and subsequently affect the state’s tourism sector.
“Tourism is a vital contributor to the country’s economy, accounting for approximately 9 per cent of the GDP and employing over 12 per cent of the workforce. ‘The affordability of liquor is crucial in the tourism sector. The increase in VAT in our state is in stark contradiction to this, and will adversely affect both domestic and international tourism. Affordability is key for tourists, and this decision hampers the initiatives taken to attract visitors. We urge the government to reconsider the decision to increase the VAT, keeping the larger picture of our economy in mind, HRAWI President Pradeep Shetty said.
An increase in yearly excise fees followed by the doubling of VAT on liquor is likely to have a negative effect on businesses, while reasonable liquor prices encourage spending, boost revenues and enhance the overall appeal of Maharashtra as a tourism destination, HRAWI vice-president Chetan Mehta said.
“The hospitality industry is just about recovering from the pandemic’s blow. Further price hikes will dampen the spirit of business owners and may lead to undesirable outcomes, such as increased illegal activities. We appeal to the government to consider the long-term consequences of such decisions,” Mehta added.
(This story has not been edited by News18 workers and is revealed from a syndicated information company feed – PTI)
