Chennai, Sept 23:
The retail price of liquor in Tamil Nadu will not be increased on account of the newly introduced Environmental and Social Welfare Cess, Prohibition and Excise Minister K Vignesh has clarified.
The clarification comes after the State Government gazetted an amendment providing for a cess of up to Rs 20 on every unit container of alcoholic liquor. The provision was introduced through the Tamil Nadu Value Added Tax (Amendment) Act, 2026. The actual cess will be prescribed based on the type and quantity of liquor and the nature of its container.
Vignesh said the government would levy only Rs 10 as cess and adjust this amount against the Rs 10 already collected under the bottle buy-back scheme. Therefore, consumers would not face an additional increase in the retail price merely because of the new levy, he said.
“We’re collecting Rs 10 extra under the bottle buy-back scheme. The cess will be Rs 10 only, and not more than that. It will be adjusted against the Rs 10 already being collected. There won’t be any retail price hike in the near future just because of this,” the Minister told DT Next.
Officials said the existing Rs 10 collected separately for the bottle buy-back scheme would be incorporated into the maximum retail price of liquor. The government has also decided to entrust liquor manufacturers with the collection, transportation and recycling of empty bottles.
The new cess is intended to fund recycling, safe disposal and reuse of liquor containers. It will also support rehabilitation and de-addiction programmes, welfare and livelihood assistance for families affected by alcohol addiction, awareness campaigns and ecological protection and restoration.
The legislation defines a unit container as a bottle, jar, flask, pot, tin, can, tetra pack or any similar receptacle designed to hold a specified quantity of liquor. The cess will not form part of taxable turnover and will come into effect from a date to be notified by the government.