The Government of Maharashtra has assured the hotel industry to call for a joint meeting with state finance ministry and excise department over review of their demand to roll-back the hike in value added tax on alcohol consumed in hotels to 10 per cent from 5 per cent.

A delegation of Association of Hotel and Restaurant Owners has made a representation to Chief Minister Eknath Shinde, Deputy Chief Minister Devendra Fadnavis and Excise Minister Shambhuraje Desai.

While Fadnavis has directed Nitin Karir, Additional Chief Secretary - finance to look into the industry submission immediately, Desai has promised to call a joint meeting with the Finance Ministry in the next few days, said Sukesh Shetty, President, AHAR.

Difficulties and problems

The association will also meet Deputy Chief Minister Ajit Pawar soon and appraise him of the difficulties and problems faced by the industry after the VAT hike from November 1, he said.

Maharashtra has about 18,000 bars and 5 lakh workers depend on them. These bars account for about 50 per cent of the annual beer sales in Maharashtra of 33 crore litters and 30 per cent of the annual sales of 8.5 crore litters of Indian Made Foreign Liquor of 28 crore litters.

The hike in VAT will not only hit hotel and bar owners, but also lead to fall in government revenue as people will stay-at-homes and buy drinks directly from shops.

AHAR wants the state government to remove VAT on consumption of alcohol in restaurants like other states of Karnataka and Hyderabad, said Shetty.

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