REVENUE CONTRIBUTION

Governments are increasingly relying on alcohol revenue to pay their bills. Roughly one-fifth of most State government budgets are funded by alcoholic beverage category. With the exception of Gujarat, Nagaland, Mizoram and Manipur, where liquor is officially prohibited, alcohol revenue takes the second, third or fourth place in terms of contributions to a State’s coffers.Liquor provides 20 per cent of the share of the government’s own revenue in most States.

  • In the last financial year, the Tamil Nadu State Marketing Corporation (Tasmac), the government-owned IMFL monopoly, alone paid a whopping Rs 21,800 crore into the government above 20% of states budget.
  • In Kerala, where 22 per cent of the total government revenue came from the alcohol, the total excise and commercial tax revenue from alcohol (IMFL and toddy) was close to Rs 8,000 crore.
  • In Karnataka, where the government is in the wholesale business, Excise revenue is currently 20 per cent of State revenue.
  • West Bengal’s Excise revenue in the last financial year was Rs 2,600 crore, up from the previous year’s Rs 2,100 crore and is above 30% with sales tax collected.