Media Release

Mumbai, Jul 7: The Navi Mumbai Hotel Owners Association (NMHOA) convened a press conference on Monday afternoon at its auditorium near Ayyappa Mandir, Nerul, to urge the government to address several pressing issues faced by the hotel and liquor industry.

President Dayanand Shetty, vice president Dr Shiva Moodigere, Jayaprakash Shetty, honorary general secretary Mahesh Shankar Shetty, treasurer Mohankumar J Gowda, co-treasurer Harshad Shetty, former president Shyam N Shetty, Godwin Serao, and others were present.

Key concerns raised

1) Hike in excise duty
The NMHOA criticised the recent hike in excise duty on alcohol, calling it a move aimed at raising funds for state-level projects and election campaigns. The association stated that the liquor industry has been disproportionately targeted by successive government policies, despite contributing significantly to the state’s revenue.

"While we have been granted industry status, we receive no rebates, soft loans, or policy support. We have survived under challenging conditions without any meaningful assistance and fear that we may not endure much longer if such measures continue," the association said.

2) Value Added Tax (VAT)
The association raised objections to the increase in VAT from the previous 5–10%, noting that the decision was made without consulting hotel associations or stakeholders in the liquor industry.

"These tax hikes will impact both consumers and hoteliers, creating a long-term burden that undermines the financial health of the industry," they stated.

3) Yearly renewal of excise fees
Earlier, excise fees were revised once in a decade based on census data. However, the association highlighted that the finance ministry has now made it standard to increase excise fees by 10% annually. For the fiscal year 2025–26, the increase has gone up to 15%, citing state debt and revenue shortfalls.

NMHOA’s recommendations to government:

• Immediate rollback of the VAT hike.

• Adjust annual excise renewal fees based on census data.

• Implement excise duty at the manufacturer level with minimal annual increases.

• Consider inputs from hotel and permit room associations when framing policies.

• Remove outdated restrictions on alcohol service in hotels and eliminate the requirement for drinking permits for customers.

Conclusion
The NMHOA warned that if the government fails to act, permit room holders will be compelled to protest and may surrender their permits to the excise department. This could lead to revenue losses, a rise in illegal liquor sales, and lawlessness.

“The pandemic already delivered a severe blow to the hotel and liquor industry, which received no support from the authorities. Ours is among the most heavily taxed sectors, yet it remains one of the highest contributors to government revenue,” the association stated.