Tamil Nadu's revenue from excise, VAT on liquor sales sees a drop in FY18

Tamil Nadu’s revenue from excise and value-added tax (VAT) on liquor sales, an important source for revenue for the state, dropped to Rs 267.94 billion in 2017-18 from Rs 269.95 billion a year earlier.

The state said a reduction in excise revenue and increase in VAT (sales tax) was due to certain amendments to the tax structure.

The excise revenue figure for 2017-18 is before the deduction of Rs 1.93 billion received as the refund of Special Privilege Fee and Vend Fee paid in excess by Tamil Nadu State Marketing Corporation (TASMAC) during 2012-13. TASMAC, owned by the Government of Tamil Nadu, has a monopoly over wholesale and retail vending of alcoholic beverages in the state.

The number of dry days, during when there would be no liquor sales, have increased from five to eight days with effect from 2012. However, the impact of these was managed with price increase, according to sources.

The Corporation procures Indian Made Foreign Spirits (IMFS), beer and wine from 11 IMFS manufacturing units, seven beer manufacturing units and one wine unit functioning in the state. It also sells 250 brands of foreign spirits, beer and wine through its more than 150 licensed retail outlets.