TN to lose Rs 1,000 crore in liquor sales

 In a dent to the Tamil Nadu (TN) government’s revenue, the money spinning liquor company Tamil Nadu State Marketing Corporation (Tasmac), is on the verge of losing Rs 1,000 crore.

The Centre’s new tax structure and the proposed removal of liquor shops along highways, following a court order, will impact revenue collections.

The new central tax rule means that Tasmac, the monopoly liquor selling vendor in TN, will come under the service tax structure. Rough estimates suggest that the entity will have to pay a service tax of Rs 500 crore.

Now, the state earns revenue by imposing levies like special fees and privilege fees among others on each bottle of liquor. These fees now come under the service tax net.

“We charge wholesaler’s vendor fees, special privilege fees and import licence fees for hard liquor and beer,” a senior Tasmac official said. The money generated from these fees goes to the state government’s coffers.

Accordingly, Tasmac charges about Rs 140 per case as wholesaler’s vendor fee and Rs 45 per case as special privilege fee. The liquor sales in the state averages Rs 50 crore per day.

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