Maharashtra restaurateurs threaten strike from May 1

Maharashtra restaurateurs have threatened to go on strike from May 1 if the state government fails to bring down the value added tax (VAT) on restaurants to 4 per cent from the prevailing 12.5 per cent.

Over 10,000 members of the Association of Hotels and Restaurants (AHAR) in the state have decided to hold a protest rally on April 19 at Azad Maidan to protest against the current VAT rates.

"For the last one year, we have been requesting the government to bring down the VAT rate. If the government fails to implement our demand, we will be compelled to go on an indefinite strike from May 1," said Chandrahas Shetty, president, AHAR.

Neighbouring states such as Karnataka, Goa, Madhya Pradesh and Gujarat have already reduced VAT to 4 per cent, said Shetty.

"Implementation of VAT in the state has led to 400 per cent increase in tax burden for more than 30,000 restaurants having an annual turnover of less than Rs 50 lakh," said Shetty.