Industries yet to receive Rs 1,000 crore tax incentives

Despite being labelled best State in ease of doing business, poor progress on ground.

Published: 12th January 2017 03:54 AM  |   Last Updated: 12th January 2017 03:54 AM   |  A+A-

By Express News Service

VIJAYAWADA: Andhra Pradesh, which has been ranked second in the country for its ‘ease of doing business’ policy, has failed to release funds pertaining to the incentives announced to the industrial sector.
By the end of December, the industry representatives claimed that at least Rs 1,000 crore of arrears pertaining to incentives, are pending for payment in industrial sector alone.

To attract investments, the Andhra Pradesh government had announced numerous incentives to eligible entrepreneurs as part of different industrial policies. As per norms, these industries are eligible for different incentives like exemption of NALA tax, luxury tax, VAT, power tariff and other incentives to different sectors.
“But the State government is not releasing the arrears which have accumulated to the tune of at least Rs 1,000 crore over the years. The budget allocation for the current fiscal was also fixed at Rs 975 crore in industrial sector alone,” complained Potluri Bhaskara Rao, general secretary of Andhra Pradesh Chambers of Commerce and Industry Federation.

The State government has allocated Rs 227 crore for tourism, Rs 302 crore for IT sector, Rs 100 crore for food processing and another Rs 147 crore for silk industry during this fiscal. Industriessector rue lack of incentives

APCCIF president Muthavarapu Muralikrishna told newsmen here on Wednesday that despite the government policy clearly speaks about providing incentives, the departments concerned are asking them to pay taxes on par with regular investors.

“For instance, the government announced the NALA tax waiver for industries, but the municipal authorities insist for a No Objection Certificate from the revenue officers. When the government’s policy is clear, why should there be delays and harassment? In the absence of specific orders to the departments concerned, it takes six months to an year to get permissions,” he said.

Ahead of the AP State Budget 2017-18, the APCCIF has urged the State government to enhance budgetary allocation.


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