{"id":13238,"date":"2025-07-07T16:46:44","date_gmt":"2025-07-07T11:16:44","guid":{"rendered":"https:\/\/darjedarnama.com\/?p=13238"},"modified":"2025-07-07T16:46:44","modified_gmt":"2025-07-07T11:16:44","slug":"navi-mumbai-hotel-owners-slam-excise-hike-vat-surge-shiva-mudgire-and-nmhoa-warn-of-industry-wide-collapse","status":"publish","type":"post","link":"https:\/\/darjedarnama.com\/?p=13238","title":{"rendered":"\u201cNavi Mumbai Hotel Owners Slam Excise Hike, VAT Surge: Shiva Mudgire and NMHOA Warn of Industry-Wide Collapse\u201d"},"content":{"rendered":"<article class=\"text-token-text-primary w-full\" dir=\"auto\" data-testid=\"conversation-turn-34\" data-scroll-anchor=\"true\">\n<div class=\"text-base my-auto mx-auto py-5 [--thread-content-margin:--spacing(4)] @[37rem]:[--thread-content-margin:--spacing(6)] @[72rem]:[--thread-content-margin:--spacing(16)] px-(--thread-content-margin)\">\n<div class=\"[--thread-content-max-width:32rem] @[34rem]:[--thread-content-max-width:40rem] @[64rem]:[--thread-content-max-width:48rem] mx-auto flex max-w-(--thread-content-max-width) flex-1 text-base gap-4 md:gap-5 lg:gap-6 group\/turn-messages focus-visible:outline-hidden\" tabindex=\"-1\">\n<div class=\"group\/conversation-turn relative flex w-full min-w-0 flex-col agent-turn\">\n<div class=\"relative flex-col gap-1 md:gap-3\">\n<div class=\"flex max-w-full flex-col grow\">\n<div class=\"min-h-8 text-message relative flex w-full flex-col items-end gap-2 text-start break-words whitespace-normal [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"7fa9788c-88cd-4210-9fc3-60596a6a48bb\" data-message-model-slug=\"gpt-4o\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose dark:prose-invert w-full break-words light\">\n<h4 data-start=\"173\" data-end=\"486\"><strong><span style=\"color: #800000;\">Navi Mumbai, July 7, 2025 \u2013<\/span> <\/strong><strong>In a bold and strongly worded press release issued by the Navi Mumbai Hotel Owners Association (NMHOA), Shiva Mudgire, representing the association, has openly criticized the state government over what the industry calls \u201cdisastrous and unjustified taxation reforms.\u201d<\/strong><\/h4>\n<div style=\"width: 640px;\" class=\"wp-video\"><!--[if lt IE 9]><script>document.createElement('video');<\/script><![endif]-->\n<video class=\"wp-video-shortcode\" id=\"video-13238-1\" width=\"640\" height=\"361\" preload=\"metadata\" controls=\"controls\"><source type=\"video\/mp4\" src=\"https:\/\/darjedarnama.com\/wp-content\/uploads\/2025\/07\/WhatsApp-Video-2025-07-07-at-3.15.50-PM.mp4?_=1\" \/><a href=\"https:\/\/darjedarnama.com\/wp-content\/uploads\/2025\/07\/WhatsApp-Video-2025-07-07-at-3.15.50-PM.mp4\">https:\/\/darjedarnama.com\/wp-content\/uploads\/2025\/07\/WhatsApp-Video-2025-07-07-at-3.15.50-PM.mp4<\/a><\/video><\/div>\n<h4 data-start=\"488\" data-end=\"542\"><span style=\"color: #800000;\"><strong>\u00a0Threefold Tax Burden Crushing the Industry:<\/strong><\/span><\/h4>\n<ol data-start=\"543\" data-end=\"1957\">\n<li data-start=\"543\" data-end=\"1093\">\n<h4 data-start=\"546\" data-end=\"1093\"><strong>Excise Duty Hike on Alcohol:<\/strong><br data-start=\"578\" data-end=\"581\" \/><strong>The government has increased excise duties on alcoholic beverages, ostensibly to fund large-scale public infrastructure, healthcare, and election campaign promises. However, NMHOA argues that the liquor industry alone is being unfairly targeted, despite being a key revenue contributor. Shiva Mudgire emphasized that while hoteliers have been granted \u201cindustry\u201d status on paper, they have received no real benefits \u2014 no subsidies, no concessional loans, and no ease-of-doing-business frameworks.<\/strong><\/h4>\n<\/li>\n<li data-start=\"1095\" data-end=\"1577\">\n<h4 data-start=\"1098\" data-end=\"1437\"><span style=\"color: #800000;\"><strong>Value Added Tax (VAT) Increase:<\/strong><\/span><br data-start=\"1133\" data-end=\"1136\" \/><strong>Without consultation or notice, the Ministry of Finance has hiked VAT rates from 5\u201310%, expanding its applicability across more goods and services. NMHOA highlights that neither hotel associations nor key stakeholders were consulted, despite the fact that they are the ones most impacted.<\/strong><\/h4>\n<h4 data-start=\"1443\" data-end=\"1577\"><strong>\u201cThis will create a domino effect \u2014 customers will pay more, businesses will lose patrons, and jobs will be at stake,\u201d Mudgire stated.<\/strong><\/h4>\n<\/li>\n<li data-start=\"1579\" data-end=\"1957\">\n<h4 data-start=\"1582\" data-end=\"1957\"><span style=\"color: #800000;\"><strong>Yearly Excise Fee Hike:<\/strong><\/span><br data-start=\"1609\" data-end=\"1612\" \/><strong>The industry has also been hit with a 15% hike in annual excise license renewal fees for the year 2025\u201326. Historically, these fees were adjusted based on 10-year census data. Now, an automatic 10% yearly hike has become the new norm, creating financial instability for small and mid-sized establishments, especially permit rooms.<\/strong><\/h4>\n<\/li>\n<\/ol>\n<h4 data-start=\"1964\" data-end=\"2022\"><span style=\"color: #800000;\"><strong><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-13241\" src=\"https:\/\/darjedarnama.com\/wp-content\/uploads\/2025\/07\/WhatsApp-Image-2025-07-07-at-3.15.49-PM-300x139.jpeg\" alt=\"\" width=\"1334\" height=\"618\" srcset=\"https:\/\/darjedarnama.com\/wp-content\/uploads\/2025\/07\/WhatsApp-Image-2025-07-07-at-3.15.49-PM-300x139.jpeg 300w, https:\/\/darjedarnama.com\/wp-content\/uploads\/2025\/07\/WhatsApp-Image-2025-07-07-at-3.15.49-PM-1024x474.jpeg 1024w, https:\/\/darjedarnama.com\/wp-content\/uploads\/2025\/07\/WhatsApp-Image-2025-07-07-at-3.15.49-PM-768x356.jpeg 768w, https:\/\/darjedarnama.com\/wp-content\/uploads\/2025\/07\/WhatsApp-Image-2025-07-07-at-3.15.49-PM-907x420.jpeg 907w, https:\/\/darjedarnama.com\/wp-content\/uploads\/2025\/07\/WhatsApp-Image-2025-07-07-at-3.15.49-PM-640x297.jpeg 640w, https:\/\/darjedarnama.com\/wp-content\/uploads\/2025\/07\/WhatsApp-Image-2025-07-07-at-3.15.49-PM-681x315.jpeg 681w, https:\/\/darjedarnama.com\/wp-content\/uploads\/2025\/07\/WhatsApp-Image-2025-07-07-at-3.15.49-PM.jpeg 1280w\" sizes=\"(max-width: 1334px) 100vw, 1334px\" \/><br \/>\nNMHOA\u2019s Urgent Recommendations to Policymakers:<\/strong><\/span><\/h4>\n<h4 data-start=\"2023\" data-end=\"2574\"><strong>A) Immediate Abolition of the New VAT Slab, which disproportionately burdens both consumers and business owners.<\/strong><br data-start=\"2139\" data-end=\"2142\" \/><strong>B) Link annual excise fee increases to census data, ensuring they reflect ground realities.<\/strong><br data-start=\"2237\" data-end=\"2240\" \/><strong>C) Shift excise duty to the manufacturer level, with capped incremental hikes.<\/strong><br data-start=\"2322\" data-end=\"2325\" \/><strong>D) Formally involve hoteliers and permit room associations in policymaking, so reforms are based on practical insight.<\/strong><br data-start=\"2447\" data-end=\"2450\" \/><strong>E) Remove the outdated requirement of a liquor consumption permit in hotels, which NMHOA calls inefficient and obsolete.<\/strong><\/h4>\n<h4 data-start=\"2581\" data-end=\"2621\"><span style=\"color: #800000;\"><strong>\u00a0A Grim Warning from the Industry:<\/strong><\/span><\/h4>\n<h4 data-start=\"2622\" data-end=\"2770\"><strong>The association has warned that if these arbitrary hikes continue, thousands of permit room holders may surrender their licenses en masse.<\/strong><\/h4>\n<h4 data-start=\"2773\" data-end=\"2996\"><strong>\u201cThe only path left to us is protest. If nothing changes, the legal market will collapse \u2014 illegal liquor trade will flourish, tax revenue will plunge, and the government will have only itself to blame,\u201d said Shiva Mudgire.<\/strong><\/h4>\n<h4 data-start=\"2998\" data-end=\"3239\"><strong>The COVID-19 pandemic already devastated the industry, with zero compensation or aid from the state. Now, with escalating operational costs, the hospitality sector \u2014 one of the top tax contributors \u2014 is being pushed to the brink.<\/strong><\/h4>\n<h4 data-start=\"3241\" data-end=\"3454\"><strong>The NMHOA has urged the Chief Minister and Finance Minister to take immediate corrective steps to prevent irreversible damage to one of Maharashtra\u2019s most employment-generating and revenue-yielding industries.<\/strong><\/h4>\n<h4 data-start=\"3461\" data-end=\"3648\"><\/h4>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n","protected":false},"excerpt":{"rendered":"<p>Navi Mumbai, July 7, 2025 \u2013 In a bold and strongly worded press release issued by the Navi Mumbai Hotel Owners Association (NMHOA), Shiva Mudgire, representing the association, has openly criticized the state government over what the industry calls \u201cdisastrous and unjustified taxation reforms.\u201d \u00a0Threefold Tax Burden Crushing the Industry: Excise Duty Hike on Alcohol:The [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,159,15,37,36],"tags":[72,73,8642,8634,8633,8643,8639,8636,8640,8641,8638,8637,8635],"_links":{"self":[{"href":"https:\/\/darjedarnama.com\/index.php?rest_route=\/wp\/v2\/posts\/13238"}],"collection":[{"href":"https:\/\/darjedarnama.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/darjedarnama.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/darjedarnama.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/darjedarnama.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13238"}],"version-history":[{"count":1,"href":"https:\/\/darjedarnama.com\/index.php?rest_route=\/wp\/v2\/posts\/13238\/revisions"}],"predecessor-version":[{"id":13242,"href":"https:\/\/darjedarnama.com\/index.php?rest_route=\/wp\/v2\/posts\/13238\/revisions\/13242"}],"wp:attachment":[{"href":"https:\/\/darjedarnama.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/darjedarnama.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/darjedarnama.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}