Mumbai: Orchestra bar owners in Mumbai have received relief after the state Home Department revised the premises licence fee structure, reducing the annual renewal hike from 10% to 5% and granting concessipesh.
Revised Fees Effective From 2020
Under the revised arrangement, the increase in premises licence fees notified by the Mumbai Police Commissioner on December 4, 2019, will be implemented from January 1, 2020, instead of January 1, 2018. The change effectively provides relief to bar operators from the additional fee burden for the preceding two years.
The premises licence fee for orchestra bars had been fixed at Rs 2 lakh, with a proposed annual renewal increase of 10% from January 1, 2018. The government has now halved the annual escalation rate to 5%, reducing the recurring financial burden on establishments.
COVID-19 Closure Concessions Announced
The decision also provides concessions in premises and performance licence fees for the periods during 2020 and 2021 when bars remained closed due to the COVID-19 pandemic. The relief will be proportionate to the duration of the closures.
The Home Department has directed the Mumbai Police Commissioner to undertake the necessary further action to implement the revised fee structure.
The decision is expected to provide financial relief to orchestra bar operators and hospitality businesses in Mumbai, which had faced prolonged disruptions during the pandemic as well as disputes over licence fee increases. The revised structure seeks to address the association's concerns while easing the burden of annual fee escalation on licence holders.
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