AP Chambers submits pre-budget wish list to Fin minister Keshav

Vijayawada: AP Chambers of Commerce & Industry Federation on Thursday submitted its pre-budget suggestions to Finance Minister Payyavula Keshav ahead of the State Budget 2026–27 scheduled to be presented on February 14. In its representation, AP Chambers president Potluri Bhaskara Rao said "we request the government to announce a dedicated escrow account mechanism for industrial incentives (promised by Chief Minister N Chandrababu Naidu during the recent CII Partnership Summit), ensuring timely and predictable release of approved incentives. This will go a long way in restoring industry confidence and easing the cash-flow pressures faced by MSMEs. In this context, we also seek adequate budgetary allocation for pending and future industrial incentives, in line with policy commitments."

AP Chambers sought introduction of a one-time VAT dispute resolution scheme to unlock blocked capital (estimated as Rs5,000 crore), reduce long-pending litigation, and significantly improve ease of doing business. The scheme will also help the government to mobilise huge revenue. Rao said "we urge the government to expedite the completion and operationalisation of 175 MSME parks planned to set up in each MLA constituency with common infra and also plug-and-play infrastructure in some parks, and to focus on node-level development within industrial corridors, so that policy announcements translate into tangible industrial activity across regions. We further submit that rationalisation of the Professional Tax framework will substantially reduce the taxes and also compliance burden on MSMEs, which form the backbone of employment and economic activity in the State."

At present, property tax assessment in urban local bodies is limited to only two categories—residential and commercial—with no separate classification for industrial units.

AP Chambers of Commerce & Industry Federation on Thursday submitted its pre-budget suggestions to Finance Minister Payyavula Keshav ahead of the State Budget 2026–27 scheduled to be presented on February 14. In its representation, AP Chambers president Potluri Bhaskara Rao said "we request the government to announce a dedicated escrow account mechanism for industrial incentives (promised by Chief Minister N Chandrababu Naidu during the recent CII Partnership Summit), ensuring timely and predictable release of approved incentives. This will go a long way in restoring industry confidence and easing the cash-flow pressures faced by MSMEs. In this context, we also seek adequate budgetary allocation for pending and future industrial incentives, in line with policy commitments."

AP Chambers sought introduction of a one-time VAT dispute resolution scheme to unlock blocked capital (estimated as Rs5,000 crore), reduce long-pending litigation, and significantly improve ease of doing business. The scheme will also help the government to mobilise huge revenue. Rao said "we urge the government to expedite the completion and operationalisation of 175 MSME parks planned to set up in each MLA constituency with common infra and also plug-and-play infrastructure in some parks, and to focus on node-level development within industrial corridors, so that policy announcements translate into tangible industrial activity across regions. We further submit that rationalisation of the Professional Tax framework will substantially reduce the taxes and also compliance burden on MSMEs, which form the backbone of employment and economic activity in the State."

At present, property tax assessment in urban local bodies is limited to only two categories—residential and commercial—with no separate classification for industrial units.