CHENNAI: The state government has doubled the annual privilege fee for FL2 licence holders in Chennai from Rs 15 lakh to Rs 30 lakh and substantially increased the fee for clubs in other urban local bodies by amending the Tamil Nadu Liquor (Licence and Permit) Rules, 1981.
Under the revised fee structure, FL2 licence holders in corporations with a population above 10 lakh will pay Rs 25 lakh annually, while those in corporations with a population below 10 lakh will pay Rs 20 lakh.
The annual privilege fee for clubs in municipalities has been fixed at Rs 15 lakh. The exercise may bring in additional revenue of Rs 200 crore to Rs 300 crore every year.
However, there is no change in the fee for licence holders in other areas. The amendment retains the application fee at Rs 10,000 and the licence fee at Rs 30,000. The government order, issued by Additional Chief Secretary K Manivasan, was published in the gazette on June 25.
A senior excise department official told the TNIE that the earlier fee structure had only two slabs — Rs 15 lakh and Rs 10 lakh. “We have now introduced five slabs covering Chennai, corporations and municipalities. The revision is aimed at increasing the state’s revenue by classifying FL2 clubs based on their location,” the official said.
An FL2 licence is issued by the Commissionerate of Prohibition and Excise to non-proprietary recreational clubs, allowing them to possess and serve liquor exclusively to their members. A club must have at least 50 members willing to consume liquor to obtain the licence. Tamil Nadu has around 850 FL2 clubs, including about 25 in Chennai.
A member of a recreation club in Chennai, requesting anonymity, said the fee hike was unlikely to result in higher liquor prices. “Most clubs already charge Rs 40 to Rs 50 above the maximum retail price for liquor. Instead of raising liquor prices further, they are more likely to increase charges for snacks, food, bottled water and other services. Members are unlikely to object to such increases,” he said.
He also urged the government to strengthen enforcement of the licence conditions. Under the rules, liquor can be served only to registered members and their eligible guests, and clubs are required to issue membership identity cards. However, he alleged that several clubs, including some in Chennai, serve liquor to non-members.
Meanwhile, an FL1 licence holder operating a bar attached to a Tasmac retail outlet in Madurai welcomed the fee revision. He pointed out that FL1 licensees pay Rs 1.25 lakh a month, or Rs 15 lakh annually, whereas many FL2 clubs were earlier paying only Rs 10 lakh. “The revised fee structure creates a more level playing field and will help ensure fair competition,” he added.