Bar & restaurant owners protest shocking license fee hike- statewide shutdown likely

Tension is brewing in Karnataka’s hospitality sector as bar, pub, restaurant, and wine store owners gear up for a possible statewide shutdown starting May 29. The trigger? A steep hike in license renewal fees announced by the Congress-led state government, which has left liquor business owners shocked and agitated.

Also Read:Karnataka bar & restaurant owners decry ‘Unscientific’ license fee hike

The government has raised license fees by up to 100% across various categories, causing widespread backlash from alcohol vendors. For instance, the license fee for CL-9 (Bar & Restaurant) has jumped from Rs 8.62 lakh to Rs 15 lakh, and with added cess of Rs 2.25 lakh, the total now stands at a whopping Rs 17.25 lakh.

The situation is similar across other categories:

• CL-6A (Star Hotels): Fee increased from Rs 9.75 lakh to Rs 20 lakh + Rs 3 lakh cess = Rs 23 lakh total
• CL-7 (Boarding & Lodging): Fee increased from Rs 9.75 lakh to Rs 17 lakh + Rs 2.55 lakh cess = Rs 19.55 lakh total

Business owners, already reeling under inflation and post-pandemic recovery challenges, say this move is unjust and burdensome. They accuse the government of having increased liquor prices three times already, and now attacking businesses further with these fee hikes.

A delegation of owners is expected to meet the Chief Minister on Monday to voice their concerns. If the outcome is not positive, they have resolved to go ahead with the closure of outlets across the state from May 29 in protest.