TN's Excise Revenue Lags behind K'taka, Maharashtra: Govt

• Tamil Nadu collected ₹11,836 crore in excise duty in 2025-26, compared with ₹41,000 crore in Karnataka and ₹34,170 crore in Maharashtra.

• Excise revenue grew at 9.49% CAGR in Tamil Nadu, slower than Karnataka’s 11.66% and Maharashtra’s 18.69%.

• Excise duties and VAT on liquor still make up 26% of Tamil Nadu’s State Own Tax Revenue.

The white paper released by the TVK-led government has highlighted that Tamil Nadu's excise duty collections lag behind its peer states, Karnataka and Maharashtra.

In 2025-26, the excise collection stood at ₹41,000 crore in Karnataka, ₹34,170 crore in Maharashtra, and ₹11,836 crore in Tamil Nadu, the lowest absolute collection among the peer states.

As per the data, state excise collections grew at a compound annual growth rate of 11.66% in Karnataka, 18.69% in Maharashtra, and 9.49% in Tamil Nadu.

With both the smallest excise base and the slowest pace of growth among the peer States, this revenue differential represents one of the largest identifiable gaps in Tamil Nadu's overall State Own Tax Revenue (SOTR).

Tamil Nadu Finance Minister Marie Wilson had on Tuesday released a white paper on the state's finances, targeting the previous DMK regime over a range of metrics.

Despite this underperformance, the state excise duties and VAT on liquor combined still constitute 26% of SOTR, a significant share that makes the performance of this head consequential for the state’s overall revenue position.