Reaction (LOL – MustWatch) to the price hike of Alcohol in TamilNadu






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Reaction (LOL – MustWatch) to the price hike of Alcohol in TamilNadu
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Liquor prices in Tamil Nadu may soon go up by 15% to 25% with the state government deciding to mop up additional excise revenue from liquor sale and Tamil Nadu State Marketing Corporation (Tasmac), the monopoly liquor wholesaler-cum-retailer, likely to increase procurement price, heeding to manufacturers’ pleas.

The state government introduced a bill in the assembly on Monday to increase the upper ceiling on excise duty on liquor. The extent of duty increase will be known only when the government notifies it after the bill is passed. The move has come close on the heels of the government tabling reports in the assembly on sliding liquor sales. After an 18%-20% year-on-year increase in excise and sales tax revenue from liquor for several years, the state suffered a Rs 39 crore slide in revenue in 2013-14. Still, at Rs 21,641 crore, liquor was for the single largest revenue source for the government last year.

Tasmac officials will take a final call on the extent of increase in procurement price on Tuesday, sources said. It is learnt that after the hike in procurement price and excise duty revision, the selling price of a quarter bottle (180 ml) of ordinary brandy brand could go up from Rs 70 to Rs 85, that of medium-ranged products from Rs 80 to Rs 100 and premium brands would see an MRP increase of Rs 25 per 180ml bottle to Rs 115.

While Tasmac officials refused to comment, manufacturers said an increase in prices was inevitable as they have been maintaining price lines without change for nearly seven years. “In other states, there is a free pricing policy, while in Tamil Nadu, prices are decided by the government. We hope to get some respite with the price revision,” said a manufacturer.

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