During the fiscal year 2023-24, liquor sales in Tamil Nadu yielded ₹45,855.67 crore in revenue, as disclosed by the state government in the Assembly. This total includes ₹35,081.39 crore from VAT and ₹10,774.28 crore from excise duties. Compared to the previous year’s revenue of ₹44,121.13 crore, this represents an increase of ₹1,734.54 crore, pending final reconciliation of figures according to the Prohibition and Excise Department.
Additionally, during the same period, the government collected ₹53.93 crore from special fees on imported foreign liquor, while the Tamil Nadu State Marketing Corporation (TASMAC) earned ₹16.70 lakh from service charges. Beer exports amounted to 3,20,024 cases, generating ₹187.79 lakh in revenue. Export permits for liquor to other states and Union Territories were facilitated online.
In combating illicit activities, such as the production and sale of illegal liquor, as well as trafficking in narcotics and psychotropic substances, the government emphasized rigorous enforcement measures. In the year 2023-24, authorities filed cases against 12,431 instances of illicit arrack production, resulting in the arrest of 12,422 individuals and the destruction of 4,64,152 liters of illicit arrack. These operations, conducted in collaboration with police and revenue officials, included frequent raids and inspections of licensed premises.
The government’s efforts also extended to setting up 25 additional de-addiction centers in government hospitals, in partnership with the Health and Family Welfare Department, to aid in the rehabilitation of drug addicts. The goal remains to coordinate across departments to achieve a drug-free Tamil Nadu.
As of March, TASMAC operated 4,829 retail outlets across 38 districts, with 2,919 attached bars. Liquor was supplied to 546 FL2-licensed clubs and 854 FL3-licensed hotels.
During discussions in the Assembly, there were calls from various quarters, including Congress legislator J.M.H. Aassan Maulaana, to consider allowing toddy shops in the state as a potential strategy to curb illicit liquor trade, acknowledging the challenges posed by cross-border alcohol imports from neighboring states like Andhra Pradesh and Puducherry.
The revenue from Tasmac has always sparked public outcry, leading to the closure of highway shops. Nevertheless, the government continues to see rising income from Tasmac each year, with some projects reportedly funded based on this revenue. Leaders like K Annamalai, TN BJP chief, has repeatedly urged the government to explore alternative revenue sources apart from Tasmac. Regarding total prohibition, earlier criticisms were leveled at DMK for omitting it from their election manifesto. MP Kanimozhi clarified that DMK’s commitment focused on reducing alcohol sales rather than eliminating them entirely, countering accusations of unfulfilled promises made by various parties at election time. This significant revenue growth this year has raised concerns among many.
(With Inputs From The Hindu)
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