The revenue earned by Tamil Nadu’s state-owned liquor retail outlets, TASMAC, has been a topic of controversy for years, with some arguing that the government is overly reliant on the revenue generated by liquor sales. No matter whichever Dravidian party is in power, the State government has prioritized revenue from TASMAC over public health.
Tamil Nadu’s Liquor Minister V. Senthilbalaji recently made a statement that the DMK government doesn’t need TASMAC revenue to run the government. Yes, the state generates revenue from various sources, including property tax and registration fees, buf the contribution of TASMAC to the state’s tax revenue cannot be ignored.
In the first year of the DMK’s rule, TASMAC generated a record-breaking revenue of ₹36,050.65 Cr, which increased to ₹44,098.56 Cr in the second year. These numbers are significant and indicate that the state is heavily dependent on TASMAC revenue.
While the government may deny that they need TASMAC revenue, it is clear that the state’s revenue receipts have seen a steep increase in recent years, with TASMAC playing a significant role. The budget estimated State’s Own Tax Revenue (SOTR) for the 2022-23 financial year stands at ₹1.42 lakh crores, and the government has set a target of collecting ₹50,000 crores from TASMAC alone, which accounts for almost one third of the total SOTR.
The fact that the government hasn’t shut down TASMAC outlets despite advocating for prohibition in the past. It suggests that the government is not willing to forego the revenue generated by TASMAC, despite its negative impact on public health.
The government’s decision to prioritize TASMAC revenue over public health is concerning, especially given the increase in alcohol-related health problems in the state. However, it is clear that the government sees TASMAC as a significant revenue generator, and it is unlikely that they will take any steps to reduce their dependence on it.
While the Tamil Nadu government may claim that they don’t need TASMAC revenue, the data suggests otherwise. The revenue generated by TASMAC is a significant contributor to the state’s tax revenue, and it is clear that the government values this revenue source. While it is concerning that the government is prioritizing revenue over public health, it is unlikely that they will change their stance on TASMAC anytime soon.
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