Coronavirus: What Will Happen To The Income of Tamil Nadu?

Putting out the Janet Curfew in India has affected so many wage workers which you could know more in detail by reading Coronavirus: What You Need to Know About the Struggle of Tamil Wagers. Keeping these people inside has not only affected the workers themselves but also the overall economy of the state government of Tamil Nadu. Read more to learn about the losses that the southern state of India, Tamil Nadu, is currently facing as a result of the lockdown.

Where Does Tamil Nadu Get Its Income?

Top officials from the Tamil Nadu Commerce Department have stated that the state is looking at a huge loss of 14 thousand crore (1,40,00,00,00,000) during the end of this coronavirus curfew. On behalf of the department, they earn an average of 70 thousand crores (7,00,00,00,00,000) every year where about 60% to 70% of this total revenue of the state comes from the business tax department. From this tax department, the tax on merchants belonging to the manufacturing sector, revenue from merchants selling goods within the states plays a major role on how they gather their income each year.  Another mainstream revenue that the departments makes is from the commerce sector where they mainly make money from alcohol (TASMAC) and combustion products.

What’s The Situation Now?

If you have been reading the news or keeping up with my blogs, then you would know that the Janet Curfew was issued after March 24th to curb the spread of the novel coronavirus. Thus, other than essential stores, almost all manufacturing factories were closed which has led to the loss of jobs to many wage workers. Sales of petrol and diesel were reduced since the usage of vehicles reduced. Also, gas prices didn’t change a decimal during the lockdown and you can find the reason behind this wonder when you read Coronavirus: How Gas Prices Reacted Differently in Tamil Nadu?. On the other hand, TASMAC (alcohol) shops were closed for a brief amount of time until it was opened just a few weeks ago. Opening alcohol stores brought a huge push-back on the Tamil Nadu government where they have been mocked continuously with memes and troll videos.

Currently, alcohol stores in Tamil Nadu has been in full force as there has been long lines where gas stations are in a moderate pace as people aren’t frequently driving. In the last two months, the company has generated a decent revenue of up to ₹ 11,000 crore where alcohol and fuel combined have reached an amount of ₹ 6,000 crore. In the near future, it is expected that companies would generate revenues of up to ₹ 2,500 crores by trade.

What’s The Commerce Department’s Response?

An official from the Tamil Nadu Commerce Department stated that the curfew had affected them by a great margin. An official stated that the tax revenues for March of last year was about 18%. Also, the deadline for payment of GST tax has been given until June 30th. However, the expected tax liability will not be available during the months of April and May this year. Therefore, there is a possibility of a revenue loss of at least 14 thousand crores in the following months to come.

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