Tamil Nadu government on Thursday moved a bill in the state Assembly for levy of an additional five per cent tax on sale of liquor. Commercial Taxes Minister K C Veeramani moved the bill to amend the Tamil Nadu Value Added Tax, 2006, aimed at augmenting the state’s revenue.
As per the Statement of Objects and Reasons in the bill, the five per cent tax on sale of liquor with retrospective effect from April 1, 2016 on the taxable turnover of the intra-state sale of liquors of all kinds of human consumption.
Government has also decided to make a provision in the Act to notify different rates of additional tax for different types of alcoholic liquors, it added.
Provision for levy of additional tax on goods was available in VAT Acts of states like Gujarat and Madhya Pradesh among others but there was no such provision in the Tamil Nadu Act of 2006, it said.