CHENNAI: The Tamil Nadu government has amended the regulations governing the manufacture of Indian-Made Foreign Spirits (IMFS), beer, and wine, introducing an additional fee on every standard case produced and sold by manufacturers. This move is expected to generate around Rs 600 crore in additional annual revenue for the state.
Amendments and Fee Structure
The amendments were notified through an Extraordinary Gazette issued on June 5 under the Tamil Nadu Prohibition Act, 1937. The revised rules mandate an additional fee of Rs 90 per standard case of IMFS, Rs 40 per standard case of beer, and Rs 20 per standard case of wine. This fee must be paid before the products are removed from manufacturing facilities.
The changes have been incorporated into 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.
Industry Perspective
Industry sources indicated 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.
Expected Revenue Impact
According to estimates, the state-run TASMAC network sells approximately 55 lakh carton boxes of IMFS and 27 lakh carton boxes of beer every month. Based on annual sales volumes, the additional fee is projected to yield roughly Rs 600 crore in revenue each year.
This 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 Rs 48,344 crore through excise duty and Value Added Tax (VAT) on liquor sold through TASMAC. This included Rs 11,020 crore in excise duty and Rs 37,324 crore in VAT. The revenue was higher than the Rs 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.
Definition of Standard Cases
Under the amended rules, a standard case of IMFS has been defined as a case containing nine 1,000 ml bottles, twelve 750 ml bottles, twenty-four 375 ml bottles, or forty-eight 180 ml bottles. For beer, a standard case comprises twelve 650 ml bottles, twenty-four 325 ml bottles, or 24 cans of 500 ml each. Similar definitions have been prescribed for wine.
Implementation Details
The notification states that the additional fee will be a condition attached to the licence granted for the privilege of manufacturing liquor, beer, and wine in the state. It will be payable on every standard case issued or sold by the licensee before its removal from the manufactory.
Conclusion
The move comes as the state government seeks to augment revenue from the liquor sector, which remains one of Tamil Nadu’s biggest contributors to government finances. With the new levy expected to add around Rs 600 crore annually, the state's earnings from the sector are set to rise further in the current financial year.
