CHENNAI: The TVK-led government has imposed an additional levy on liquor manufacturers supplying to Tamil Nadu, a move that Tasmac officials say could generate nearly Rs 1,000 crore in additional annual revenue for the state exchequer. The additional levy would not lead to any increase in retail liquor prices for now, they added.
Under the revised levy, manufacturers of Indian-Made Foreign Spirits (IMFS) will have to pay an additional fee of Rs 90 per standard case. A standard case comprises nine bottles of 1,000 ml each, 12 bottles of 750 ml each, 24 bottles of 375 ml each or 48 bottles of 180 ml each.
Similarly, beer manufacturers will have to pay an additional Rs 40 per case containing 12 bottles of 650 ml each, while wine manufacturers will be required to pay Rs 20 per case containing 12 bottles of 750 ml each. The revised fee structure, which has come into effect, was notified through a gazette publication on June 5 under the provisions of the Tamil Nadu Prohibition Act, 1937.
The home, prohibition and excise department has also issued a government order (G.O.) incorporating the amendments into the Tamil Nadu Indian-Made Foreign Spirits (Manufacture) Rules, 1981, the Tamil Nadu Brewery Rules, 1983, and the Tamil Nadu Wine (Manufacture) Rules, 2006.
According to the notification, the additional fee will form part of the conditions attached to grant of licences for the manufacture of liquor, beer and wine in the state. The fee is being levied on every standard case issued or sold by the licensee before its removal from the manufacturing unit.
According to the Excise and Prohibition Policy Note for 2025-26 accessed by TNIE, the state earned Rs 48,344 crore through excise duty and value-added tax (VAT) on liquor sales during 2024-25. Manufacturers currently pay excise duty of 58% and VAT of 220% on liquor supplied to the state. The newly introduced levy could generate nearly Rs 1,000 crore in additional annual revenue for the exchequer, officials said.
Tasmac sources said the move comes after a recent high-level review meeting chaired by Chief Minister C Joseph Vijay in which it was stated that liquor manufacturers earlier were required to pay amounts ranging from Rs 40 to Rs 80 per standard case under “various heads, including party funds”.
Following the review meeting, the government introduced the additional levy and directed manufacturers to comply with all regulations and avoid any unauthorised payments.