Nightclubs get a shocker as state decides to impose Rs 50,000 monthly tax on joints with DJs, live music

City nightspots in for Rs 50,000 jolt

Nightclubs get a shocker as state decides to impose Rs 50,000 monthly tax on joints with DJs, live music

After the 11.30 pm clubbing deadline proposal, there is a new killjoy for nightclubs that have DJs or musical orchestras in the shape of a Rs 50,000 tax.

For you that means enjoying the city's vibrant nightlife may pinch the pocket some more, as the usual business practice is to pass on taxes to the customer.

The Collector's office has received a letter from the state government on the tax to be imposed on joints which have musical orchestras or DJ performances.

Who pays how much
The letter says nightclubs at five-star hotels will have to pay Rs 1 lakh per month by way of the new tax, while other nightclubs will have to pay Rs 50,000 if they are within municipal limits. Joints outside the municipal limits will have to pay Rs 25000 per month.

The letter is still with the collector office and has not been circulated to nightclubs as certain formalities are yet to be taken care of by the police and Excise departments.

"We received the letter many weeks ago but we have to share it with the Excise and police departments and certain formalities have to be completed. After that the letter will be circulated," said Resident Collector Anil Pawar. "We don't know when that will happen."

Pawar justified the tax saying nightclubs and restaurants earn enough to pay the new tax.

"Most places charge a high entry fee, and liquor and food are also priced high," said Pawar. "They are capable of paying the tax."

Nightclubs react
The development, news of which had spread like wildfire within the hospitality industry some time ago, created quite a buzz among nightclub owners.

Ganesh Shetty, president, Restaurant and Hotel Association of Pune, said the association will stand behind the nightclubs and guide them.

"The rule is more suitable to Mumbai than Pune. We have around 20 nightclubs and we will completely support them," said Shetty. "Once we get the letter, we will have a meeting with our Mumbai counterparts and seek their guidance and then decide on a particular plan of action."

Sunil Chandani, director, Saks Hospitality Pvt Ltd, who owns a nightclub in Koregaon Park, said they will follow the association's directive.

"We will go according to the association though we cannot take any action till we receive the letter," said Chandani. "After that we will discuss with the association and then take action."

A spokesperson from Scream, Le Meridian, said, "After we look at the volume of business and how it's going to affect us, we will take a stand on the issue. For the time being, I can assure that we will not increase either entry fee or alcohol prices at the club."