Tamil Nadu's TASMAC Reports ₹50,845 Crore Revenue in FY26, Announces Employee Salary Hikes and Digitalization Measures

The Tamil Nadu State Marketing Corporation Limited (TASMAC), the state government's liquor sales arm, generated a total revenue of ₹50,845 crore in the financial year 2026, according to the Home, Prohibition and Excise Department Policy Note for 2026-27. This data was released alongside performance updates and policy shifts for the ongoing fiscal year.

Of the total revenue collected in FY26, VAT or sales tax accounted for ₹39,010 crore, while excise duty contributed ₹11,836 crore. This performance represents a year-on-year growth of approximately 5 per cent compared to FY25. Provisional figures from the Comptroller and Auditor General (CAG) indicate that this liquor revenue constitutes roughly 26 per cent of the state's total own tax revenue for FY26.

Financial performance has remained steady into the current fiscal year. In the first four months of FY27, TASMAC recorded ₹18,55 crore in revenue. Based on these trends, the state enterprise is projected to finish the fiscal year with an estimated 5.3 per cent growth in revenue.

Vignesh K, the Minister for Prohibition and Excise, presented the policy note to the Assembly, outlining several administrative, financial, and social policy updates. Among the employee-focused measures, the government announced a second salary hike within 100 days of assuming office. Effective September 1, the revised monthly remuneration brings salaries to ₹33,023 for supervisors, ₹30,284 for salespeople, and ₹26,680 for assistant salespeople. This revision involves an additional annual expenditure of ₹486.9 crore for the state government. Additionally, staff found violating maximum retail price (MRP) norms face suspension, with repeat offenses resulting in dismissal.

To expand revenue streams, the 2026-27 policy note outlines several adjustments implemented since June. An additional privilege fee per standard case is projected to generate an extra ₹750 crore this year and ₹1,000 crore annually. Furthermore, a hike in the FL2 License Fee is expected to bring in ₹52.85 crore in additional renewal revenue for FY27. Special fees on imported foreign liquor contributed ₹119 crore in full-year FY26, with an additional ₹53 crore already collected in FY27.

The state has also introduced technological changes to streamline operations. Effective August 7, TASMAC launched an online liquor pre-booking and payment system via its website. Uncollected orders under this system are auto-cancelled at the end of the day, accompanied by a ₹10 service fee deduction.

Alongside revenue and operational updates, the government detailed public health and regulatory steps. A total of 717 TASMAC retail shops located near educational institutions, places of worship, and bus stands have been ordered to close. The policy note emphasizes a commitment to curbing illicit and sub-standard liquor, arresting revenue leakages from non-duty paid alcohol, and combating illicit trade. To support public health, the allocation for the Rehabilitation Fund for 2026-2027 has been set at ₹70 crore, focusing on drug de-addiction, recovery programs, and awareness campaigns.

"The financial performance of state-backed enterprises like TASMAC provides critical insight into state-level fiscal health and tax generation models. Managing a major revenue source while simultaneously implementing strict retail compliance, wage revisions, and digital transformation initiatives requires careful operational balance. Furthermore, coupling revenue expansion with increased allocations for public health and de-addiction rehabilitation highlights the complex socioeconomic responsibilities tied to regulated state sectors." — Dr. Shishir Gupta, Founder & CEO, StartupLanes