Chennai: Rise in prices of liquor in Tamil Nadu came into effect on Friday with a state-owned Tasmac set to generate an additional Rs 5,000 crore in a year. The state cabinet approved the increase in prices on Wednesday, which is said to take off the burden of additional expenditure to be incurred by the state government after it hiked the salaries of its employees across the board.
Prices of various brands of liquor have increased anywhere between Rs 10 and Rs 40, sources said. The state government, which would incur an additional expenditure of Rs 14,719 crore after implementing the new pay hike, according to the recommendations of the 7th Pay Commission, hopes to compensate the amount that it will be spending additionally in the pay bill of the employees.
The sources said rates have been increased for brandy, whisky, rum and wine across the brands. They said the ordinary brand of brandy, which currently costs Rs 88 for 180 ml, would cost Rs 100 after the rate change comes into effect. “Same way, a medium brand of brandy, whisky, rum and wine which hitherto costs Rs 100 to Rs 110 and premium brands of these items which costs anywhere between Rs 100 and Rs 500 would cost an additional '10 to '40,” the sources said.
State-owned Tasmac will earn an additional Rs 5,000 crore every year due to the price hike. Tasmac had incurred losses in May this year after the Supreme Court ordered that liquor cannot be served in bars on the national and state highways. Tasmac had closed nearly 1,500 shops due to the order leading to the loss of several thousand crores but the majority of these shops have opened their shutters now following the court correcting its earlier order.
Tasmac has 5,000 shops across the state and generates revenue of more than Rs 22,000 crore. “The revenue wil jump to Rs 27,000 crore after the price increase,” sources said.
