Tamil Nadu brings fresh liquor tax, moves to plug Tasmac leak

CHENNAI: In an effort to overhaul Tamil Nadu's liquor administration, the C Joseph Vijay-led TVK government has imposed an additional levy on liquor, beer and wine manufacturers while simultaneously launching a crackdown on alleged unofficial cash collections and 'party fund' practices within the State-run TASMAC network.

The twin measures, unveiled within days of the new government assuming office, are expected to significantly boost State’s revenues and tighten scrutiny over one of Tamil Nadu's largest cash-generating sectors.

Through amendments notified in a gazette on June 5 under the Tamil Nadu Prohibition Act, 1937, the government introduced an additional fee of Rs 90 per standard case of Indian-made foreign liquor, Rs 40 per standard case of beer and Rs 20 per standard case of wine. The levy will be collected before products are cleared from manufacturing units.

Officials estimate the move could generate nearly Rs 600 crore annually. The revised fee structure has been incorporated into the Tamil Nadu Indian-Made Foreign Spirits (Manufacture) Rules, 1981, the Tamil Nadu Brewery Rules, 1983, and the Tamil Nadu Wine (Manufacture) Rules, 2006, through a Government Order issued by the Home, Prohibition and Excise Department.

The development assumes political significance as Chief Minister Vijay, during his first Cabinet meeting on Friday, is learnt to have ordered an extensive crackdown on alleged revenue leaks and unofficial collections embedded in TASMAC operations.

Senior officials said the Chief Minister was informed that nearly Rs 102 crore was allegedly being diverted every month through informal 'party fund' collections across the TASMAC network.

"The Chief Minister made it clear that every rupee generated through liquor sales must reach the treasury. Illegal collections and overcharging will not be tolerated," Prohibition and Excise minister K Vignesh told reporters in Dindigul.

According to Excise Department sources, unofficial collections had allegedly become institutionalised across wholesale supply, transport and retail operations over nearly two decades. Officials claimed that around Rs 90 per liquor case, Rs 40 per beer case and Rs 20 per wine case were allegedly routed through unofficial channels.