Tamil Nadu Government has no options other than opening liquor shops in the State to tide over the economic crisis caused by the coronavirus pandemic and the resultant lockdown, according to a top Government official in Chennai.
All liquor shops barring those in Chennai city would reopen on Thursday morning bringing cheers to the dispirited tipplers in the State .
More than ten persons had committed suicide during the days when the 5,146 liquor outlets in the State downed the shutters. Though the Government hiked the prices of liquor by Rs 10 to Rs 80 per bottle, it has not dampened the spirit of the boozing fraternity as the wait for sun to rise on Thursday to queue up in front of the liquor outlets.
Liquor is one of the main sources of income for Tamil Nadu Government.
“State’s Own Tax Revenue contributes to 60 per cent of Tamil Nadu’s monthly revenue which runs to Rs 10,000 crore. What the State may receive in the month of April wouod not be more than 20 per cent of this amount because of the shut down,” Prof C Murukadas, lead economist of Tamil Nadu and adviser to the Government.
Fifty percent of the SOTR comes from the sale of alcohol and petroleum products.
Tamil Nadu Government holds the monopoly in liquor procurement and sales. All liquor outlets in the State are owned by the Government. The financial year 2017-2018 saw liquor contributing Rs 26,797 crore of the State’s revenue.
“Excise duty on manufacture and sale of alcohol comprises 10 to 15 per cent of the State’s Own Tax Revenue. States like Tamil Nadu impose VAT; also charge special fees on imported foreign liquor, transport fee and label and brand registration fee. As liquor sales are operated by TASMAC, Tamil Nadu Government receives certain amount as sales margin. Altogether in 2018-2019 , Tamail Nadu Government’s earnings from liquor stood at Rs 31, 157 crore. This is 35 per cent of the State’s Own Tax Revenue of Rs 87, 905.26 crore generated in 2018-2019. The Total Revenue of Tamil Nadu in 2018-2019 was Rs 2.98 lakh crore out of which liquor contributed 10.45 per cent. There fore Tamil Nadu Government cannot afford to dispense with the earnings from liquor for its day to day functioning,” said Prof Murukadas, himself a strong proponent of prohibition.
Prof Murukadas, a widely respected scholar in the State with many books to his credit, pointed out that Tamil Nadu was on the brink of financial crisis mainly due to the expenditure for containment of Covid-29 pandemic.
“At this juncture, it is not possible for the government to deploy the police force to detect illicit distillation. The incidents of suicides are on the high because of liquor addicts,” he pointed out.
Besides, liquor and petroleum, the other areas from which the State mobilizes revenue are registration of vehicles and immovable properties. “But there are no business activities in the State because of the coronavirus lockdown. Since vehicles are off the roads, there is no sale of petroleum products and this has taken a heavy dent on the State’s economy,” pointed out Prof Murukadas.
Officials in TASMAC (Tamil Nadu State Marketing Corporation), said the distilleries from where they procure liquor are owned by leaders of the DMK as well as the AIADMK. “The DMK is in the forefront opposing the government’s move to reopen the liquor shops. But that is to impress and convince the people in the State,” said the official.