Pre-State Budget, AP Chambers Seeks One-Time Disputed VAT Relief
It says the move will unlock an estimated Rs 5,000 crore of blocked capital
Vijayawada: AP Chambers of Commerce and Industry Federation has sought from state Finance minister Payyavula Keshav rollout of bold measures in his 2026–27 Andhra Pradesh Budget, including a dedicated escrow for industrial incentives to a one-time VAT dispute scheme.
“Such an arrangement can ignite growth of MSMEs, exports, and jobs,” AP Chambers president Potluri Bhaskara Rao said in a letter submitted to the state government ahead of the budget.
He maintained that the escrow account mechanism will ensure timely release of incentives promised by Chief Minister N. Chandrababu Naidu at the recent global summit. "This will ease MSME cash-flow woes and make industry confident," he observed.
The other major demand of AP Chambers is a one-time VAT dispute resolution scheme to unlock an estimated Rs 5,000 crore of blocked capital. “This will slash litigation, boost ease of doing business, and swell government revenues,” Bhaskara Rao pointed out.
In addition, the federation has pushed for turning policy into real action through swift completion of 175 MSME parks—one per MLA constituency—with common infrastructure and plug-and-play facilities, alongside node-level development in industrial corridors.
Other key demands include rationalising the Professional Tax Framework to cut MSME burdens, introducing a separate industrial property tax category, distinct from residential/commercial tax, with fair assessments, and slashing high diesel prices through fuel tax tweaks to keep Andhra Pradesh competitive against its neighbours.
The AP Chambers president wanted government orders 5 and 6 scrapped for autonagars and industrial estates. This will boost flexibility and allow land use changes for expansion, diversification, and reviving stressed units.
Spotlighting high-job sectors, he requested higher allocations for tourism infrastructure, aqua and food processing (cold chains, value addition, exports), and industry-linked skill programmes.
The federation pitched for Entrepreneurial Development Centres state-wide to back the CM's "one family-one entrepreneur" vision.
