TASMAC revenue crosses record Rs 50,000 crore mark in Tamil Nadu

Chennai, Sep 1 (IANS) Revenue from the Tamil Nadu State Marketing Corporation (Tasmac) crossed the Rs 50,000 crore mark for the first time in 2025-26, underlining the state government’s continued dependence on taxes collected through liquor sales.

According to the Home, Prohibition and Excise Department’s policy note for 2026-27, the state-owned liquor retailer generated Rs 50,845 crore during the last financial year. This represented an increase of Rs 2,464 crore, or about 5 per cent, from the Rs 48,381 crore collected in 2024-25.

The record receipts accounted for nearly 26 per cent of Tamil Nadu’s own tax revenue, making the liquor trade one of the most important sources of funds for the exchequer. Value-added tax formed the largest component of the collection, contributing Rs 39,010 crore. Excise duty yielded another Rs 11,836 crore.

The latest figures indicate that revenue growth has continued in the current financial year. During the first four months of 2026-27, Tasmac generated Rs 17,855 crore. Based on the department’s projections, its annual revenue is expected to rise by another 5.3 per cent this year.

The four-month collection alone works out to an average of more than Rs 4,460 crore a month, illustrating the pace of receipts.

Tasmac operates the retail sale of Indian-made foreign liquor across Tamil Nadu and has long occupied a central place in discussions over government revenue, public health and prohibition.

Its financial performance is closely watched because even a modest change in liquor sales or tax rates can have a substantial effect on the state’s overall receipts. The corporation’s latest milestone comes at a time when it continues to face criticism over the functioning of liquor outlets and bars. Political parties, activists and sections of the public have repeatedly raised concerns relating to the accessibility of alcohol and the social consequences of consumption.

At the same time, the scale of revenue generated by Tasmac highlights the fiscal challenge involved in reducing the state’s reliance on liquor-related income.

With more than one-fourth of Tamil Nadu’s own tax revenue now linked to Tasmac collections, the 2025-26 figures reveal the corporation’s growing importance to the state’s finances. If the projected 5.3 per cent growth is achieved in 2026-27, liquor revenue will move further above the historic Rs 50,000-crore threshold, strengthening government receipts while keeping the debate over regulation, social costs and revenue dependence firmly in focus.

–IANS

aal/dpb