Telangana Reuters, 5th October 2026, Hyderabad: The bar and restaurant business is already burdened with various financial pressures. Imposing a new ‘privilege tax’ under these circumstances will place an additional financial strain on bar owners. If this burden has to be passed on to customers, they too are likely to face significant difficulties.
This situation threatens to cause further losses to bars and restaurants that operate legally and in compliance with regulations. Simultaneously, it could lead to a rise in illegally operated permit rooms and ‘belt shops’ (unauthorized liquor outlets).
*Key Demands:*
1. Immediately abolish the privilege tax.
The government must immediately withdraw this newly imposed additional financial burden on bar and restaurant owners.
2. Strictly regulate permit rooms in accordance with government norms.
Government regulations stipulate that a permit room must be confined to an area of 100 square meters. However, operations resembling permit rooms are currently continuing at some wine shops across areas spanning 500, 1,000, and 2,000 square meters, or even up to an acre. Officials must immediately identify and curb these activities that violate regulations. 3. ‘Belt shops’ in areas with licensed bars must be completely shut down.
The operation of ‘belt shops’ in the vicinity of authorized bars and restaurants causes severe financial loss to bar owners who conduct business legally by holding licenses and paying government taxes. Therefore, the government must take strict measures to ensure that no ‘belt shops’ are allowed to operate in areas where bars exist.
4. Authorized bars and restaurants must be protected.
The government should safeguard the interests of bar and restaurant owners who operate in compliance with regulations and pay all applicable taxes and license fees. Increasing the financial burden on bars while simultaneously permitting illegal ‘permit rooms’ and ‘belt shops’ undermines the legitimate business ecosystem.
Therefore, on behalf of the Telangana State Bar & Restaurant Owners, we demand that the government favorably consider our grievances, abolish the ‘privilege tax,’ curb ‘permit rooms’ operating in violation of regulations, and close down ‘belt shops’ in areas where bars are located.
Telangana State Bar & Restaurant Owners Association
