Govt plans to hike Tasmac liquor price by Rs 10-20

On the new tariff, a senior Tasmac official told DT Next that the price rise will be a minimum of anything between Rs 10 and 20 (per 180 ml) bottle of various brands.

Similarly, beer price is also expected to increase Rs 10 for all brands, he said. 

The Tamil Nadu State Marketing Corporation’s 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. The last hike was effected 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 collections, had dipped in the past couple of years due to the closure of hundreds of liquor shops along highways following a Supreme Court order, hence the need for this measure,” the Tasmac official said. The hike 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 a week. 

According to the official, at present, in the ordinary liquor category, a 180 ml (quarter bottle) costs Rs 100 and after the price hike, it will be pegged at Rs 110. Similarly, for the medium brand 180 ml liquor —price range between Rs 130 to 190 – the hike will be Rs 15. The premium brand quarter bottles which costs more than Rs 200, will experience a Rs 20 increase.

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.