State government increases excise duty of Indian Made Foreign Liquor

The Tamil Nadu state government has decide to increase the excise duty of Indian Made Foreign Liquor (IMFL). A hike of 15% has been imposed on IMFL. It is assumed that it will  result in a price hike of Rs 10-20 for the tipplers. The maximum retail price (MRP) of an ordinary variety of 180 ml bottle will go up by Rs 10 and that of the medium and premium varieties of IMFL increase by Rs 20 per 180 ml bottle.

The state government  holds the monopoly of liquor sale in the state. Liquor outlets are run by state owned Tamil Nadu State Marketing Corporation (Tasmac).

There are over 5,300 Tasmac liquor outlets in the state contributing about Rs 30,000 crore of tax revenue to the state exchequer.

Earlier the Tamil Nadu government increased the value added tax (VAT) on petrol (Rs 3.25 per litre) and diesel (Rs 2.50/litre) with a hope to earn an additional Rs 2,500 crore.