Can Hotel Association Stop Daru Price Hike?

Cross your fingers and hope it can convince finance minister to cancel hike plan; or you'll have to down less and pay more...

Cross your fingers and hope it can convince finance minister to cancel hike plan; or you'll have to down less and pay more...
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It was only in April that we started paying more for alcohol. But after state finance minister Dilip Walse-Patil's pre-Assembly election budget announcement on June 4, we'll have to shell out some more.

But there could be some respite if the five-star hotel association, Hotel and Restaurant Association-Western India (HRA-WI), can convince Patil to scrap his plans for a hike.
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Hike on VAT

Patil had proposed a hike in Value Added Tax on liquor by five per cent and excise duty on Indian Made Foreign Liquor (IMFL).

This means that 180 ml of alcohol will cost Rs 10 more, 375 ml Rs 20 more and 750 ml Rs 40 more.

"Another hike in liquor prices will no longer be viable for hotels and restaurants," said S P Jain, president of HRA-WI, who confirmed that the appeal had been made.
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The hotel association has also appealed to Patil to waive off the Luxury Tax, on room revenue, which has taken a severe toll due to economic slowdown.

'Ridiculous'

This latest move has obviously angered regular consumers. Bandra resident Rakesh Chawla grumbled that the April hike had already affected his daily liquor budget and a second hike would force him to give up drinking.

"This is ridiculous. Hoteliers will definitely pass on the hike to us and we have to face the brunt especially during the time of recession," said Chawla.
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Dipinder Singh Sachdeva, owner of H20 pub in Bandra, added, "If the hike is approved, we may have to incur huge losses. Already the pub industry is facing a huge loss due to RTO's stringent checks."
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Bhavik Bhatt, manager of Rock Bottom pub, Juhu, also said, "Revellers will be hit hard by a further hike in liquor prices. The ministry should reconsider the proposal."

5 years ago

Five years ago, an average peg at Rock Bottom cost u00a0Rs 300. Now it's Rs 500. At H20 pub, a Rs 100 peg five years ago now cost Rs 120.

Similarly, at the Intercontinental Hotel, Marine Drive, a peg that cost between Rs 150 and Rs 800, now costs between Rs 250 and Rs 1,200.

Cheapest alcohol in India

This move will help tipplers to give up their drinking habits. The government is trying to help the domestic producers.
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Rashmi Uday Singh, Food critic

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