[133]

IV-1 Ex. (343)

TAMIL NADU

GOVERNMENT GAZETTE

EXTRAORDINARY

PUBLISHED BY AUTHORITY

©

[Regd. No. TN/CCN/467/2012-14.

GOVERNMENT OF TAMIL NADU

[R. Dis. No. 197/2009.

2026

[Price: Rs. 1.60 Paise.

Part IV—Section 1

Tamil Nadu Bills

No. 343]

CHENNAI, FRIDAY, AUGUST 7, 2026

Aadi 22, Parabhava, Thiruvalluvar Aandu–2057

BILLS INTRODUCED IN THE LEGISLATIVE ASSEMBLY

OF THE STATE OF TAMIL NADU

Under Rule 130 of the Tamil Nadu Legislative Assembly Rules,

the following Bill which was introduced in the Legislative Assembly of

Tamil Nadu on 7th August, 2026 is published together with Statement

of Objects and Reasons for general information:-

L.A.Bill No. 14 of 2026

Short title and

commencement.

Insertion of new

section 3-A.

A Bill further to amend the Tamil Nadu

value added tax Act, 2006.

Be it enacted by the Legislative Assembly of the State of

Tamil Nadu in the Seventy-seventh Year of the Republic of India

as follows:

1.

(1) This Act may be called the Tamil Nadu Value

Added Tax (Amendment) Act, 2026.

(2) It shall come into force on such date as the

State Government may, by notification, appoint.

2.

After section 3 of the Tamil Nadu Value Added Tax

Act, 2006, the following section shall be inserted, namely:-

Tamil Nadu Act

32 of 2006.

134

TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY

“3-A. Levy of Environmental and Social Welfare

Cess.─(1) Notwithstanding anything contained in this Act and in

addition to the tax leviable under section 3, every dealer shall be

liable to pay a cess, namely, Environmental and Social Welfare

Cess, on the sale of alcoholic liquor for human consumption, at

such point of sale in the State and at such rate not exceeding

rupees twenty per unit container containing alcoholic liquor, as

may be specified by the Government by notification, and different

rates may be specified in respect of different kinds and quantities

of alcoholic liquor and in respect of different kinds of unit containers

containing alcoholic liquor.

(2) The Government may utilise the proceeds of the cess

levied under sub-section (1) for any or all of the following

purposes, namely:-

(a) facilitation of recycling, safe disposal and reuse of

unit containers;

(b

rehabilitation and de-addiction programs for

individuals suffering from alcohol addiction;

(c)

welfare measures and livelihood support for

families of the persons affected by alcohol

addiction;

(d)

awareness and education campaigns highlighting

the ill-effects of alcohol consumption and the

adverse

environmental

hazards

caused

by

improper disposal of unit containers;

(e)

protection and restoration of ecology, forest and

wildlife; and

(f)

any other purpose relating to environmental and

social welfare as may be prescribed by rules.

(3) The cess levied under sub-section (1) shall not form part

of the taxable turnover for the purposes of this Act.

Explanation.─For the purpose of this section, “unit container”

means a container in the form of bottle, jar, flask, pot, tin, can, tetra

pack or any other similar receptacle designed to hold a specified

quantity of alcoholic liquor for human consumption.”.

TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY

135

STATEMENT OF OBJECTS AND REASONS

The Government is increasingly concerned about the adverse social and environmental impacts

caused by consumption of alcoholic liquor and the glass and plastic waste arising therefrom. It has also

been observed that improper disposal and inadequate recycling of the containers of alcoholic liquor

contribute significantly to ecological degradation, endangering of wildlife and public health concerns.

2. Further, various judicial decisions have underscored the responsibility of the State to mitigate

such adverse impacts. The Government considers it necessary to take appropriate fiscal and regulatory

measures to mitigate these adverse social and environmental impacts and to promote environmentally

sustainable practices.

3. Accordingly, the Government proposes to levy a cess namely, ‘Environmental and Social Welfare

Cess’ on the sale of alcoholic liquor. The proceeds of cess will be utilised for any or all of the following

purposes, namely, (a) facilitation of proper recycling, safe disposal and reuse of containers of alcoholic

liquor; (b) rehabilitation and de-addiction programs for individuals suffering from alcohol addiction;

(c) welfare measures and livelihood support for families of the persons affected by alcohol addiction;

(d) awareness and education campaigns highlighting the ill-effects of alcohol consumption and the adverse

environmental hazards caused by improper disposal of containers of alcoholic liquor; (e) protection and

restoration of ecology, forest and wildlife; and (f) any other purpose relating to environmental and social

welfare as may be prescribed by rules.

4. The Government have, therefore, decided to amend the Tamil Nadu Value Added Tax Act, 2006,

suitably for the said purpose.

5. The Bill seeks to give effect to the above decision.

D. LOGESH TAMILSELVAN,

Minister for Commercial Taxes and Registration.

136

TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clauses 1(2) and 2 of the Bill authorise the Government to issue notifications or to make rules, as the

case may be, for the purposes specified therein.

2. The powers delegated are normal and not of an exceptional character.

D. LOGESH TAMILSELVAN,

Minister for Commercial Taxes and Registration.

PRINTED  AND  PUBLISHED  BY  THE COMMISSIONER  OF  STATIONERY  AND  PRINTING, CHENNAI

ON  BEHALF  OF  THE  GOVERNMENT  OF  TAMIL  NADU

Secretariat,

Chennai-9,

R. SANTHI,

7th August 2026.

Secretary.