Chennai
On the new tariff, a Tasmac official said the price rise will be a minimum of anything between Rs 10 and 20 (per 180 ml) bottle containing liquor of various brands.
The Tamil Nadu State Marketing Corporation’s (Tasmac) decision to hike the liquor price came against the backdrop of the dip in the revenue due the closure of its 1,500 outlets across the State for various reasons.
Liquor price will be increased either by enhancing the rate of excise duty with respect to ordinary, medium and premium brands of liquor or directly through a Government Order after convening a high-level meeting. However, there is no plan as of yet to increase the prices of beer. The liquor price was increased in the state last time in 2017.
“The government usually increases liquor prices once in three years. Since revenue through liquor sales, which is the second highest after commercial tax collection, had dipped in the past couple of years due to the closure of several hundred liquor shops along highways following Apex court’s order, hence the need for this measure,” a senior official of Tasmac told DT Next.
Liquor price hike to put Rs 2,500 cr extra in TN kitty
The increase in the price of liquor is expected to put Rs 2,500 crore extra into the State’s coffers every year.
At present, the liquor sales in Tamil Nadu stands at Rs 31,157.83 crore (Excise Revenue Rs 6,863.11 crore and VAT (sales tax) was Rs 24,294.72 crore). But, the projected revenue for 2020-21 is expected to touch Rs 34,000 crore. A Tasmac official said that the increase in liquor prices would not impact sales. He pointed out in 2017, soon after the liquor prices was increased, there was a decrease in sale only for one week.
“The sale picked after that,” he added. Stating that the government could only replace a few liquor shops successfully, the official said that about 1,000 liquor shops that have been shut down could not be shifted owing to objections from the public. Hence, the government decided to hike liquor prices to make up for the loss in revenue.
According to the official, at present, in the ordinary liquor category, a 180 ml (quarter bottle) costs Rs 100 and after the price hike, the bottle will be pegged at Rs 110. Similarly, for the medium brand 180 ml liquor --whose price range between Rs 130 to 190 – the hike will be of Rs 15. And premium brand quarter bottles liquor of liquor which costs more than Rs 200, will experience a Rs 20 hike.
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