Liquor prices in Tamil Nadu are likely to rise by 15% to 25% according to recent news reports, due to the fact that Tamil Nadu State Marketing Corporation (Tasmac), the monopoly liquor wholesaler-cum-retailer, is all set to increase procurement price in response to lobbying by manufacturers. In the process the state government stands to benefit by additional excise revenue from liquor sales.
On Monday, the state government introduced a bill in the assembly to increase the upper ceiling on excise duty on liquor, Times News reports. however, the amount of the duty increase will only be clear when the government notifies it after the bill is passed.
This has come soon after the government tabled reports in the assembly on sliding liquor sales. After an 18%-20% year-on-year increase in excise and sales tax revenue from liquor for several years, the state suffered a Rs 39 crore slide in revenue in 2013-14. Still last year, at Rs 21,641 crore, liquor was by far the single largest revenue source for the government.
Following the increase in procurement price and excise duty revision, the selling price of a quarter bottle (180 ml) of ordinary brandy brand could go up from Rs 70 to Rs 85, medium-ranged products to increase in price from Rs 80 to Rs 100 and the MRP of premium brands would incur an increase of Rs 25 per 180ml bottle to Rs 115.
Source: Times News Network