Chennai: Sale of liquor in state-run Tasmac outlets continues to be a major source of income for Tamil Nadu government with a whopping Rs 24113.83 crore earned as total revenue during 2015-16.
The government’s move to implement prohibition in a phased manner by reducing working hours of retail outlets by two hours and closure of 500 shops will not have much impact on its revenue generation, say economists.
This is a 7.54 per cent growth from last year revenue of Rs 22,430 crore. The sum included sales tax of Rs 18,277.81 crore and excise revenue of Rs 5,836.02 crore.
Interestingly, Tasmac continues to earn more revenue despite sale of hard liquor going up only marginally while beer sales have dropped. Indian Made Foreign Liquor (IMFL) or hard liquor sales have gone up to 5.53 crore cases in 2015-16 from 5.51 crore in 2014-15. The average monthly sale of hard liquor has increased three times from 13.57 lakh cases in 2003-04 to 46.13 lakh cases in 2015-16.
Sale of beer has been witnessing a declining trend since registering the highest ever sale of 3.06 crore cases in 2012-13.
Consumption of beer fell to 2.31 crore cases in 2015-16 which is the lowest sales volume in the last seven years. Sources in excise and prohibition department cite the rise in price of liquor to a fall in the sale of beer over the years.
However, Assembly election campaigning helped shoot up sale of beer.
The sale of beer went up by 18.57 per cent in March and 36.65 per cent in April this year. In March 2016, 24.72 lakh cases of beer were sold against 20.85 lakh cases during the corresponding period last year. April 2016 witnessed a sale of 29.65 lakh cases against 21.71 lakh cases during the corresponding month last year.
Noted economist K.R. Shanmugam said the government’s move to reduce working hours in the morning by two hours and closure of 500 shops would impact Tasmac revenue much.
“Reduction of shop timing in the morning will not have much impact as sales peak only in the evening. Similar is the closure of 500 shops,” he said, adding that every year, Tasmac records higher growth in revenue but this fiscal revenue growth rate might fall a bit.
