NAGAPATTINAM
TASMAC outlets in Nagapattinam district are doing better business over the last two months following the levy of 50% extra tax on Indian Made Foreign Liquor by the Puducherry Government.
A substantial price difference prior to the tax hike by Puducherry government used to be an enticing factor for tipplers from Nagapattinam district to visit Karaikal often. Liquor smuggling from the enclave into Nagapattinam district also used to keep personnel of Prohibition Enforcement Wing of Tamil Nadu Police Department on their toes. Of course, the tough screening at border checkposts and restriction on movement of vehicles have also made things easier for the PEW personnel in Nagapattinam.
The daily turnover of TASMAC outlets has increased in Nagapattinam district by as much as ₹ 40 lakh per day, according to official sources.
As against the daily business of ₹ 2.3 crore to ₹ 2.5 crore, the extent of daily sales account has gone up to ₹ 2.7 crore to ₹ 2.9 crore, a senior official said.
The Puducherry government had levied as much as 50% extra tax on alcohol when the Indian Made Foreign Liquor outlets resumed functioning during May, after closure for about 60 days.
The tax was levied to offset loss of revenue as the Puducherry government was in the midst of a fiscal crisis. Excise revenue was a major source of income, official sources in Karaikal administration said.
Though the Tamil Nadu government had also effected a hike in cost of IMFL liquor, the steep increase in price of the product implemented by the Puducherry government had brought about a parity in prices.
At least until Puducherry government rolls back the prices, there will be no incentive for liquor smugglers in Tamil Nadu, sources said.