Business at bars down 60% as liquor prices soar

MUMBAI: The city's bars and restaurants are in low spirits as soaring liquor prices have brought down their business by 52-60%. A month ago city bars, pubs and hotels pushed up liquor prices by over 75% after the government introduced a hike in taxes.
“Mumbaikars are avoiding bars and opting to buy liquor from shops and drink at home. Some vendors are importing liquor from Daman and Goa and selling it in the city.Some of the liquor may be adulterated and could endanger lives,” said Ahar joint secretary Shashikant Shetty.
The rise in prices has not only affected the business of permit rooms but is also encouraged bootlegging which in turn is could result in a huge loss to the state exchequer,” said Shashikant.
Ahar secretary Sukesh Shetty lamented that few tipplers are drinking in open areas and in the neighbourhoods of housing colonies which is affecting the social security. “In some cases it is posing threat of law and order problems.”
In an attempt to lure back customers and curb the rising prices, Shashikant said bar owners are considering cutting back on comforts like air conditioning which invites a special central government service tax of 10.30%.
At the beginning of this financial year, the retail price of Indian-made foreign liquor went up by 40% to 56%. The hike on beer was a minimum of 18% to 49%. “In some bars and pubs, the hike is beyond 85%,” says Anish Gupta, a bar owner in Malad.