Restaurants not to pay excise fees, for now

After 10 per cent hike, restaurants decide to defer payment till Mumbai and city associations jointly decide on course of action

After 10 per cent hike, restaurants decide to defer payment till Mumbai and city associations jointly decide on course of action
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High on tax: Restaurants and hotels now have to pay an annual excise fee of Rs 3.25 lakh to renew the alcohol permit. representation pic

Restaurant and hotel owners across the city have no stomach for the hiked excise fees this year. The state government's hike in the annual excise fees by 10% comes close on the heels of the Finance Minister's decision to hike the service tax for AC restaurants serving liquor.

Restaurants and hotels now have to pay an annual excise fee of Rs 3.25 lakh to renew the alcohol permit. The Restaurant and Hoteliers Associations for Mumbai and Pune will take a joint decision by March 15 on whether to oppose the decision and until then have decided to defer paying the fee.

Ganesh Shetty, President, Pune Restaurant and Hoteliers Association said, "We have informed every association member not to pay the excise fees. The Mumbai association has sent a letter to Ganesh Naik, Minister for Excise, Environment and Labour."

Mohan Shetty, a restaurant owner, said, "We will follow the association and not pay till they inform us. We are paying many taxes and the excise fee hike adds to our woes."

A lounge-bar owner at Koregaon Park said that the fee has been increasing every year. "When I first started my place five years back I was paying Rs 2.75 lakhs and now it has been increased to Rs 3.25 lakhs."