Karnataka bar & restaurant owners decry 'Unscientific' license fee hike

Bar and restaurant owners across the state have expressed outrage over the Karnataka government's decision to significantly hike the license fees for operating bars and restaurants. The license fee, which was previously set at Rs 9 lakh, has now been increased to Rs 16 lakh. This decision has led to a wave of protests from the hospitality industry, with business owners calling the hike unjust and unscientific.

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In a separate move, the government has also imposed a fee of Rs 20 lakh on star-rated bars and restaurants, further fueling the discontent. P.C. Rao, the Honorary President of the Bengaluru Hotel Owners' Association, criticized the government's decision, stating that it adds to the already rising costs of essential goods like water and electricity. "How can the government expect us to bear such an increase when prices are already escalating?" he questioned.

The government’s decision has also been met with concerns over the financial burden it places on bar and restaurant owners, many of whom are still recovering from the impacts of the pandemic. The hospitality industry has long been a significant contributor to the state's revenue, with Rs 110 crore collected daily through excise duties and Rs 40,000 crore annually. However, the new fee structure is expected to bring in an additional Rs 1,200 crore to the state’s coffers.

Industry leaders have called this fee hike an "unscientific" approach that disregards the difficulties the hospitality sector is currently facing. Despite the protests, the government has not shown signs of reversing the decision, and business owners are now seeking solutions to cope with the increased financial pressure.