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In a significant development for liquor consumers in Tamil Nadu, Tasmac (Tamil Nadu State Marketing Corporation) has announced a price hike effective from January 1, 2024. This decision, which marks an increase in both sales tax and excise duty, will impact the prices of various categories of liquor, including beer and Indian Made Foreign Liquor (IMFL).
Tasmac’s Decision and Revenue Implications:
Tamil Nadu, with Tasmac holding a monopoly on liquor sales, has seen a revision in prices after nearly two years. The hike, implemented through higher sales tax and excise duty, is poised to contribute substantially to the state government’s revenue. In the fiscal year 2024-25, the government is anticipating a revenue of ₹44,099 crores from Tasmac.
Details of the Price Hike:
Starting January 1, 2024, consumers will witness varying increases in the prices of different liquor categories. For quarter bottles of ordinary and medium-range liquor, the cost will rise by ₹10, while half bottles will see a ₹20 hike, and full bottles will be dearer by ₹40. Premium liquor enthusiasts will experience a ₹20 increase for a quarter bottle, ₹40 for a half bottle, and ₹80 for a full bottle. Additionally, all brands of beer will see a ₹10 rise per bottle.
Impact on IMFL Prices:
IMFL prices, untouched for nearly two years, will be subject to this price adjustment. Tasmac had previously increased the prices of imported liquor in September of the preceding year. Despite longstanding demands from breweries for an increase in procurement prices over the past four years, this adjustment is the first of its kind.
Overview of Liquor Categories Sold by Tasmac:
Tasmac, with an extensive portfolio, caters to a diverse consumer base. The MRP for the ordinary range of liquor, constituting 40% of Tasmac sales, currently stands at ₹130 per quarter bottle, ₹260 per half bottle, and ₹520 per full bottle. Meanwhile, the medium range is priced between ₹160 and ₹640.
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Tasmac boasts an impressive array of offerings, including 43 brands in the ordinary liquor category, 49 in the medium range, and 128 premium brands. Additionally, there are 35 brands of beer and 13 of wine available. For those seeking imported liquor, exclusive outlets catering to elite consumers provide a curated selection.
Conclusion:
As the curtain falls on the year and a new pricing era dawns, Tasmac’s decision to revise liquor prices in Tamil Nadu will undoubtedly have widespread implications. While consumers may need to adjust their budgets to accommodate the increased costs, the state government stands to gain significantly in terms of revenue. It remains to be seen how this move will be received by both the public and stakeholders in the liquor industry. As we step into 2024, Tasmac’s price adjustments set the tone for the year in the realm of liquor sales in Tamil Nadu.