The Tamil Nadu government has announced its decision to exit the retail liquor business after 23 years, opting to hand over operations to private players. This transition will initially be limited to corporations and municipalities, with the state government citing a lack of dignity in managing the outlets as the primary reason for the shift.
To facilitate this change, the government plans to table necessary legal amendments to the Prohibition and Excise Act during the upcoming Assembly session. Approximately 2,500 shops and bars are expected to be privatised, with the state moving to a model where it collects licence fees from private operators, similar to the systems currently in place in neighbouring states.
Tasmac currently operates 4,048 retail outlets, which generated Rs 48,344 crore in revenue through excise duty and VAT during the 2024-25 fiscal year. As the government prepares for this transition, it is also exploring alternative revenue streams to compensate for potential financial shifts resulting from the privatisation of the state-run liquor corporation.
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