Hotels demand withdrawal of proposed VAT hike on liquor services in bars - Times of India
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MUMBAI: Hotel associations mainly comprising the Hotels and Restaurants Association Western India (HRAWI) and the Association of Hotel and Restaurant Owners (AHAR), representing the hospitality industry in Maharashtra, have raised a strong objection to the proposed increase in Value Added Tax (VAT) on alcohol consumption in restaurants from November 1 and want it to be rolled back immediately.The decision, which would elevate VAT to 10%, from the earlier 5%, not only discriminated against the restaurant industry but also lacked consultation with industry stakeholders and consideration of its potential repercussions, they said. With about 18,000 bars in hotels and restaurants of Maharashtra, they contribute to about 50% of beer sales of 33 crore litres, and 30% of the annual sale of Indian Made Foreign Liquor (IMFL) selling 8.5 crore litres of 28 crore litres. The delegations led by AHAR President Sukesh Shetty and HRAWI President Pradeep Shetty called on the excise ministr