With 45 pc of national intake, southern states draw 10-15 pc revenue from liquor: Report

The five southern states source 10-15 per cent of their revenue from excise duty on liquor but account for nearly half of the total consumption, a report said on Thursday.

The financial position of these states is precarious as the coronavirus lockdown completely dried up this crucial liquidity tap for them in April.

The five southern states of Andhra Pradesh, Telangana, Tamil Nadu, Karnataka and Kerala together consume as much as 45 per cent of all liquor sold in the country, the report by Crisil said.

"The denizens of this quintet quaff as much as 45 percent of all liquor sold in the country annually. But not a drop was sold in April, and given the dire state of their revenues, these states have been anxious to make good the losses by opening up the vends," it said.

While Tamil Nadu and Kerala top the list in revenue percentage terms at 15 per cent each, for Kerala the tax on liquor is its single largest revenue source.

The revenue share is 11 per cent each for Karnataka and Andhra .