Chennai: Liquor will soon cost more in Tamil Nadu as the govt on Friday introduced a bill to amend the Tamil Nadu Value Added Tax Act, 2006, proposing an additional ‘environmental and social welfare cess’ on the sale of liquor.The proposed cess, capped at ₹20 per unit container, will be levied in addition to the existing VAT. The rate will vary depending on the type and quantity of liquor and the size of the container. The amendment inserts a new section (3A) into the act, making every dealer liable to pay the cess at the notified point of sale within the state.The move is part of the TVK govt’s broader plan to streamline liquor sales and address the growing challenge of disposal and recycling of liquor bottles while generating a dedicated corpus for social welfare measures.According to the ‘statement of objects and reasons’ tabled by commercial taxes and registration minister D Logesh Tamilselvan, the proceeds from the cess will go to a dedicated fund and utilised for the recycling, safe disposal and reuse of liquor containers, besides financing rehabilitation and de-addiction programmes for people battling alcohol addiction.The fund will also support welfare and livelihood assistance for families affected by alcohol addiction, apart from financing awareness campaigns on the harmful effects of alcohol consumption and environmental hazards arising from improper disposal of liquor bottles.The minister said the money would also be used for environment protection, including restoration of ecology, forests and wildlife, linking liquor consumption with its broader social and environmental costs. It will come into effect once the govt notifies it after getting the governor’s assent.
