AP Chambers' Call: Raise Proportion of Central Tax Revenues in Tax Devolution to 50%
Chambers president Potluri Bhaskara Rao urged the Finance Commission to increase the proportion of central tax revenues in tax devolution to 50 per cent for states like AP, which are industrially backwards and economically weak
Vijayawada: The AP Chambers of Commerce and Industry Federation (AP Chambers) has submitted a representation to Arvind Panagariya, Chairman of the 16th Finance Commission, seeking support for development of the industry and state’s economic progress. Its functionaries met Panagariya at a meeting he organised with industry associations.
Chambers president Potluri Bhaskara Rao urged the Finance Commission to increase the proportion of central tax revenues in tax devolution to 50 per cent for states like Andhra Pradesh, which are industrially backwards and economically weak.
The chambers suggested that the Union government extend tax exemptions like CGST and give additional grants for infrastructure development to the seven backward districts, as mentioned in the AP Reorganisation Act.
He also requested FC to earmark a certain percentage of the additional tax devolution towards industrial infrastructure development in AP and to liberally grant funds to set up the MSME parks in all assembly constituencies as envisioned by the state government.
Bhaskar Rao said Andhra Pradesh is majorly an agro-based state but there are no central research institutes such as CFTRI, NIFTEM etc to support the industries in providing new technologies for locally available commodities. He sought funds for the establishment of such institutions/campuses in AP.
He noted that AP is a major producer of mango, banana, and palm oil. There has been a demand to set up mango, banana and palm boards in AP, and requested funding from the finance commission to set up these boards.
Andhra Pradesh, he said, has huge potential to emerge as the gateway to South East Asia by providing excellent connectivity to countries there through ports. He urged the FC to allocate funds for the development of ports, industrial corridors, logistics hub, and integrated connectivity between road, railways and ports to help the state become the gateway to SouthEast Asia.
Similar to the MNREGA Scheme, the AP Chambers requested the finance commission to consider one more such scheme to make available unskilled and semi-skilled labour to Micro and Small industries operating in rural areas to drive the rural economy.
