Going out gets expensive - Maharashtra govt raises tax on Bars & Restaurants by 5%

The price of alcohol served in bars, lounges, and clubs in Maharashtra will go up slightly from November 1. The state government has raised the tax on alcohol served in these places by 5%, to 10%. However, the prices of On-Counter Sales will remain unchanged.

The government made the announcement on Friday. However, The Times of India reported that there will be no increase in Value Added Tax (VAT) for liquor services in the star hotels, as they currently pay 20 per cent VAT.

Photo: Representative image

Hoteliers were quoted in the report as saying that the recent increase in the government's licence fees has already caused an increase in the cost of alcohol for consumers, and this increase in VAT will only add to their costs.
 According to reports. consumers may also choose less expensive off-premise options, which include consuming on building terraces, parks, and parked cars as a result of raising VAT.

In addition, according to media reports, the state government is also looking to introduce a new excise law that would allow bottled liquors to be sold at bars and in permit rooms, and that the price would be linked to the alcoholic content of the drinks.

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