Alcohol served in Maharashtra’s bars, clubs to get expensive from November 1: Report

Liquor served in bars, lounges, and clubs will get a little expensive from November 1 in Maharashtra. The Maharashtra state government has increased the VAT (Value-added tax) by 5 per cent for permit room liquor service, making it a total of 10 per cent. However, there will be no change in the prices of the on-counter sale.

The announcement came from the government on Friday; however, there is no increase in VAT for liquor services in star hotels as they are already paying 20 per cent, reported The Times of India.

Regarding the increase in the VAT rate, hoteliers were cited in the report as stating that the recent rise in licence fees by the government has already increased the price of alcohol for customers, and this increase is only going to add to their expenses.

"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. We are in the age where states are competing, realising power of tourism in driving economies resulting in reduction of excise duties. Goa, Chandigarh and Haryana are few such examples," Pradeep Shetty, president of Hotels and Restaurants of Western India (HRAWI), told TOI.

According to industry sources cited by TOI, consumers may choose less expensive off-premise options, including consuming on building terraces, parks, beaches or parked cars as a result of the decision to raise VAT.

In addition, the state administration is also considering implementing a new excise policy that would allow the sale of bottled liquors in bars and permit rooms and link prices to the alcohol content of beverages, as per media reports.

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