28 November,2010 01:31 AM IST | | Urvashi Seth
After pubs and hotels, orchestra bars are now facing the prospect of paying high entertainment tax (see box) that was recently levied by the Revenue Minister. More than 1,000 bars in the city are contemplating downing shutters.
Speaking to Sunday MiD DAY, Uday Shetty, a bar owner from Ghatkopar said, "Bar owners fear closing down of venues if the government continues to tax live performances. This is the only source of entertainment of several lower middle class people and a source of income for various artists.
We have been paying Rs 15, 000 per month to the police department as charges for live performances. Why are we being forced to pay yet another sum of Rs 50,000 per month to the government?"
The tax that came into effect on August 2 on account of an amendment to the Mumbai Entertainment Tax Act of 1923 has resulted in several city pubs landing in a spot due to the high tax levied on DJ performances.
Shetty added that in a recent meeting held by bar owners, many orchestra players expressed fear of losing their jobs. Sunil Pawar who performs in a Chembur-based orchestra bar said, "I have been playing here since 12 years. My family is dependent on me. We are hoping that the government will rethink its decision. Thousands of people will be rendered jobless."
Narayan Alva, president of Indian Hotel and Restaurant Association (AHAR) said, "We had already met ex-Revenue Minister Narayan Rane to raise the issue. But with a new minister stepping in, we might have to start from zero." Over 1,000 bar owners are members of AHAR.
"The middle class can't afford a club or five-star. We used to enjoy music at local bars," said Goregaon resident Prashant Pawar.
