A delegation of Andhra Pradesh Federation of Chambers of Commerce and Industry (AP Chambers), led by its president Potluri Bhaskar Rao, presented a letter containing preliminary budget proposals to Finance Minister Payyavula Keshav at the secretariat on Thursday.
AP Chambers asked the government to announce a special escrow account mechanism for disbursement of industrial incentives as promised by Chief Minister N. Chandrababu Naidu during the CII-2025 Partnership Summit and ensure timely release of approved incentives.
In line with the policy commitments, it also sought an adequate allocation of budgetary resources for the payment of pending and future industrial incentives.
The AP Chambers further sought to introduce a one-time VAT Dispute Resolution Scheme to unblock blocked capital (estimated at ₹5,000 crore), reduce long-standing litigation and significantly improve ease of doing business to help the government mobilize revenue.
They urged the government to expedite the completion and commissioning of 175 MSME parks planned in each assembly constituency with common plug-and-play infrastructure and to focus on nodal-level development within industrial corridors so that policy announcements translate into tangible industrial activities across the regions.
AP Chambers said streamlining the professional tax framework would substantially reduce tax and compliance burdens on SMEs, which form the backbone of the state’s employment and economic activity.
“tax on industrial property”
It also demanded that an “industrial property tax” classification be introduced to ensure fairness, predictability and support the growth of industry and SMEs. At present, assessment of property tax in urban local bodies is limited to two categories – residential and commercial – causing industrial properties to be assessed under the commercial category.
Rationalization of fuel taxes, reduction in diesel prices, scrapping of GO Nos. 5 and 6 related to Auto Nagars and Industrial Estates, targeted allocations for the aquaculture and food processing sectors and a targeted export-led growth strategy were other things AP Chambers wanted the government to consider.
Published – 05 Feb 2026 18:48 IST
