The Tamil Nadu government has turned to its most reliable revenue source—liquor—to shore up its finances. An additional fee has been imposed on every standard case of Indian-Made Foreign Spirits (IMFS), beer, and wine manufactured within the state. This move is expected to generate approximately ₹600 crore in additional revenue each year.
Details of the Additional Fee
Under the new rules, an additional fee of ₹90 per standard case of IMFS, ₹40 per standard case of beer, and ₹20 per standard case of wine must be paid before the products are removed from manufacturing facilities. The government has amended the Tamil Nadu Indian-Made Foreign Spirits (Manufacture) Rules, 1981, the Tamil Nadu Brewery Rules, 1983, and the Tamil Nadu Wine (Manufacture) Rules, 2006 through G.O. Ms. No. 30 issued by the Home, Prohibition and Excise Department to levy these charges.
Definition of a Standard Case
According to the amended rules, a standard case of IMFS refers to a carton containing either nine 1-litre bottles, twelve 750-ml bottles, twenty-four 375-ml bottles, or forty-eight 180-ml bottles. For beer, a standard case means a carton with twelve 650-ml bottles, twenty-four 325-ml bottles, or 24 cans of 500 ml each. Similar packaging norms have been specified for wine. The amendments were notified on June 5 under the Tamil Nadu Prohibition Act, 1937.
Industry Perspective
Industry sources indicate that the levy effectively formalizes and captures an 'input cost' component that was previously factored into pricing but did not accrue to the government. The new fee structure is expected to channel that amount directly into the state exchequer. The additional fee will be a condition attached to the licence granted for manufacturing liquor, beer, and wine in the state and will be payable on every standard case issued or sold by the licensee before its removal from the manufactory.
Revenue Projections
According to estimates, the state-run Tamil Nadu State Marketing Corporation Limited (Tasmac) network sells around 55 lakh carton boxes of IMFS and 27 lakh carton boxes of beer annually. Based on these volumes, the additional fee is projected to yield approximately ₹600 crore in revenue each year.
Existing Liquor Revenue
The additional revenue will come on top of the substantial earnings the state already derives from liquor sales. During the 2024-25 financial year, the Tamil Nadu government earned ₹48,344 crore through excise duty and value added tax (VAT) on liquor sold through Tasmac. This included ₹11,020 crore in excise duty and ₹37,324 crore in VAT. The revenue was higher than the ₹45,856 crore collected in 2023-24, underscoring the liquor sector's importance as one of the state's largest sources of non-tax revenue.
