Tamil Nadu faces revenue loss due to shutting down liquor shops

The ruling AIADMK, which returned to power last year promising “phased prohibition” in Tamil Nadu, is not happy with the shutting down of the state-run Tasmac liquor shops.

Widespread protests for prohibition which rocked Tamil Nadu a few years ago, making the issue a rallying point during the 2016 assembly elections, are back again and the government is in no mood to act against Tasmac shops that have been a major contributor to its coffers.

The state, which earns Rs26,000 crore per year through its liquor sales, has shut down 1,000 liquor shops, as part of its “phased prohibition” poll promise, since it returned to power in May last year. Finance minister D. Jayakumar had estimated that the net outstanding debt of the state government would rise to Rs3.14 trillion by 31 March 2018.