Hotels demand withdrawal of proposed VAT hike on liquor services in bars

Hotel associations in Maharashtra have objected to the proposed increase in Value Added Tax (VAT) on alcohol consumption in restaurants. They argue that the decision to raise VAT from 5% to 10% discriminates against the restaurant industry and lacks consultation with industry stakeholders. The associations believe that the increase in VAT could have wide-ranging implications, including job losses, impact on consumer spending, and a potential shift in consumer behavior towards black market and illicit sales.