Tamil Nadu's excise revenue lags behind Karnataka, Maharashtra: Govt

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 Rs 41,000 crore in Karnataka, Rs 34,170 crore in Maharashtra, and Rs 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 per cent in Karnataka, 18.69 per cent in Maharashtra, and 9.49 per cent 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 per cent of SOTR, a significant share that makes the performance of this head consequential for the state's overall revenue position.