Business and trading firms shift to Andhra Pradesh, Telangana worried

Hyderabad: The Telangana government is concerned about the shifting of various business establishments from Hyderabad to Andhra Pradesh post bifurcation which is likely to have an adverse impact on the state’s tax revenues in the coming years.

The government placed its concerns before the notice of the 14th Finance Commission. In a memorandum submitted to the commission, the Telangana State government stated that, “There are already incipient signs of about 3,000 dealers, businesses and trading houses shifting their base to Andhra Pradesh. There will be an erosion of tax not only in respect of VAT, but also stamps and registration, motor vehicles tax and state excise.”