Liquor in Tamil Nadu to get costlier by over 100%

CHENNAI: Liquor in Tamil Nadu is set to get costlier as the State government on Wednesday passed a Bill to increase the special fee levied on all excise articles such as Indian Made Foreign Liquor (IMFL), imported wine and beer.

An amendment to Tamil Nadu Prohibition Act of 1937, named the Tamil Nadu Prohibition (Amendment) Act, 2022, was passed in the Assembly in which it has been stated that, “in order to augment the revenue of the State, it was decided to enhance the maximum rate of special fee leviable on all such excisable articles from Rs 450 per proof litre to Rs 1,000 per proof litre.”

The maximum rate was notified by the State government in the year 2014 and since then no enhancement was effected.

Liquor contributes for increase in tax collection: The report of Comptroller and Auditor General (CAG) for the year 2020-21, states that liquor contributed to the increase in tax collection in Tamil Nadu. The overall collection of taxes on sales and trade increased from Rs 42,701.07 crore in 2018-19 to Rs 44,515.44 crore in 2019-20 and the overall collection of state excise duty increased from Rs 6,863.12 crore in 2018-19 to Rs 7,205.97 crore in 2019-20. “Increase in collection under taxes on sales and trade was due to collection from the sale of IMFL and beer under TN VAT. Increase in collection under state excise duty was due to higher collection from foreign liquor and spirits.” the CAG report noted.