A delegation of Andhra Pradesh Chambers of Commerce & Industry Federation (AP Chambers), led by its president Potluri Bhaskar Rao, submitted a letter containing pre-budget suggestions to Finance Minister Payyavula Keshav at the Secretariat on Thursday.
The AP Chambers has requested the government to announce a dedicated escrow account mechanism for disbursing industrial incentives as promised by Chief Minister N. Chandrababu Naidu during the CII Partnership Summit-2025 and ensure the timely release of the approved incentives.
It also sought adequate budgetary allocation for payment of pending and future industrial incentives in line with the policy commitments.
Further, the AP Chambers sought the introduction of a one-time VAT dispute resolution scheme to unlock blocked capital (estimated at ₹5000 crore), reduce long-pending litigation and significantly improve Ease-of-Doing Business, thereby helping the government mobilise revenue.
They urged the government to expedite the completion and operationalisation of 175 MSME Parks planned in each Assembly constituency with common plug-and-play infrastructure and to focus on node-level development within the industrial corridors so that policy announcements translate into tangible industrial activity across regions.
The AP Chambers submitted that rationalisation of the professional tax framework would substantially reduce taxes and compliance burden on MSMEs, which form the backbone of the State’s employment and economic activity.
‘Industrial property tax’
It also requested that an ‘industrial property tax’ classification be introduced to ensure fairness, predictability and support for industrial and MSME growth. At present, property tax assessment in urban local bodies is limited to two categories—residential and commercial— causing the assessment of industrial properties under the commercial category.
Rationalisation of fuel taxes, reduction of diesel prices, scrapping of G.O. Nos. 5 and 6 related to Auto Nagars and Industrial Estates, focused allocations for aquaculture and food processing sectors and a targeted export-led growth strategy were the other things which AP Chambers wanted the government to consider.
Published – February 05, 2026 06:48 pm IST
