Tamil Nadu government’s liquor sales arm Tamil Nadu State Marketing Corporation Limited (TASMAC) generated revenue of ₹50,845 crore in FY26 for the State government, according to the Home, Prohibition and Excise Department Policy Note for 2026-27. Of the total revenue in FY26, VAT (sales tax) accounted for ₹39,010 crore, while excise contributed ₹11,836 crore,
This represents a year-on-year growth of around 5 per cent from FY25. It is also approximately 26 per cent of the total State’s own tax revenue in FY26 (provisional as per CAG).
In the first four months of this fiscal year (FY27), TASMAC has generated ₹17,855 crore worth of revenue, and the trend points to a scenario where the liquor sales company will likely end the year with a 5.3 per cent growth in revenue.
Presenting the policy note, Vignesh K, the Minister for Prohibition and Excise, said that the Government will pursue a policy that focuses on “de-addiction, rehabilitation programmes and awareness campaigns” and is committed to eradicate illicit, sub-standard liquor and arresting revenue leakages by curbing non-duty paid liquor.
Salary hike
Further, he also announced a second salary hike for TASMAC employees within its 100 days of assuming office and warned that staff violating maximum retail price (MRP) norms would face suspension and dismissal for repeat offences.
He also told the Assembly that revised monthly remuneration from September 1 would take salaries to ₹33,023 for supervisor, ₹30,284 for salesperson and ₹28,680 for Assistant Salesperson. In total, the revision will entail an additional annual expenditure of Rs 486.9 crore for the government.
Revenue expansion
In terms of revenue expansion measures, the 2026-27 policy note said that the government, with effect from June, has introduced an additional privilege fees per standard case and this measure is projected to bring in an extra ₹750 crore this year and ₹1,000 crore annually. Further, the FL2 License Fee Hike, following a government order in June, is expected to generate ₹52.85 crore in additional renewal revenue for FY27, it said.
In full year FY26, the revenue earned by government through special fee on imported foreign liquor is ₹119 crore and during FY27, the government has already earned ₹53 crore in special fee on imported foreign liquor.
Highlighting the new government’s measures for digitising the liquor trade, the note said that effective August 7, TASMAC launched online liquor pre-booking and payments via its website. Uncollected orders on the same day are auto-cancelled with a ₹10 service fee deduction.
717 TASMAC retail shops located near educational institutions, places of worship and bus stands were ordered closed, Vignesh said.
The allocation for the “Rehabilitation Fund” for 2026–2027 stands at ₹70 crore to focus on drug de-addiction and recovery.
