State’s liquor revenue dips by ₹200 crore

Though VAT increased by ₹37 crore, excise collection fell sharply due to the closure of several private bars, restaurants

June 01, 2018 01:05 am | Updated 01:05 am IST - CHENNAI

Network in numbers: As on May 25 this year, Tasmac had 3,866 retail shops and 1,456 bars.

Network in numbers: As on May 25 this year, Tasmac had 3,866 retail shops and 1,456 bars.

In the steepest drop in the last 15 fiscal years, the revenue generated through liquor sales fell by about ₹200 crore and stood at ₹26,794 crore during 2017-18 against ₹26,995 crore during 2016-17.

Though the value added tax went up by ₹37 crore (₹20,784 crore during 2017-18 from ₹20,747 crore during 2016-17), there was a fall in excise collection, a policy note for 2018-19 tabled by the Department of Prohibition and Excise in the Assembly on Thursday revealed.

Excise revenue, which was at ₹6,248 crore during 2016-17, fell to ₹6,009 crore during 2017-18.

“This is before deduction of ₹193 crore, which was received as refund of the ‘special privilege fee’ and the ‘vend fee’, paid in excess by the Tamil Nadu State Marketing Corporation (Tasmac) during 2012-13,” it stated. Though the sector was hit following the Supreme Court order that called for closure of liquor shops along the highways, there was almost no impact on sales through Tasmac outlets as is evident from the VAT revenue. However, the drop in excise suggests that closing down of several private bars, hotels and restaurants following the apex court order has had an impact on the revenues.

Tasmac revenue had declined earlier too: between 2012-13 and 2013-14. But that time the reduction was a mere ₹5 crore.

Beer export up

However, the fee collected through export of beer increased from ₹81 lakh during 2016-17 to ₹161 lakh, after the State government allowed export of beer to other countries. Against 5,56,490 cases of beer exported during 2016-17, 10,08,625 cases were exported during 2017-18.

The State has been exporting beer to other States since 2013 and to other countries from last year.

As for import of foreign liquor, the revenue earned through the special fee continued to grow. From ₹7.39 crore, ₹7.74 crore and ₹10.80 crore during 2014-15, 2015-16 and 2016-17 respectively, it grew to ₹11.24 crore during 2017-18.

The service charge (3% special fee and 58% VAT levied at the first point of sale) during 2017-18 was ₹23.98 lakh.

The revenue generated through State excise labels during 2017-18 was ₹19.92 crore and the monthly average requirement of excise labels was around ₹21.95 crore. These labels are affixed on Indian-made foreign spirits, beer and wine bottles sold through Tasmac.

As on May 25 this year, Tasmac had 3,866 retail vending shops and 1,456 bars attached to the outlets. There were 7,287 supervisors, 15,532 salesmen and 3,644 assistant salesmen in retail outlets as on March 31 this year.

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