Nagpur: As many as 40 permit room operators in Nagpur district have failed to renew their licences, raising serious concern within the industry. The operators have cited a sharp rise in licence fees, VAT, GST, TCS and other taxes, along with escalating operational costs, as the primary reasons behind their decision.Nagpur District Restaurant Permit Room Association president Rajiv Jaiswal said the permit room or liquor bar sector is steadily turning into a “sick industry”. He expressed concern that mounting expenses and unchecked illegal liquor trade had made it increasingly difficult to run a lawful business.The absence of effective control over illicit liquor sales, Jaiswal said, is causing heavy losses to honest operators, while the growing burden of taxes and fees had become unbearable. As a result, several permit room holders have opted not to renew their licences.The association has demanded that the govt take immediate cognisance of the situation, crack down strictly on illegal trade, withdraw VAT and reduce the recently increased licence fees. Otherwise, Jaiswal warned, permit room operators could soon face a crisis similar to that being experienced by farmers.Last year, the licence fee stood at ₹9.30 lakh. This year, it has risen sharply to ₹11.50 lakh. Owing to this steep increase in costs, several permit room operators have been forced to shut down their establishments, the association stated.
