AP Chambers seeks pre-Budget reforms for industrial growth

 Vijayawada: The AP Chambers of Commerce and Industry Federation on Thursday submitted a comprehensive set of pre-Budget recommendations to minister of finance Payyavula Keshav ahead of the State Budget 2026–27, seeking measures to accelerate industrial growth, strengthen MSMEs, boost exports and generate employment.

In its memorandum, AP Chambers urged the state government to announce a dedicated escrow account mechanism for the release of industrial incentives, as promised by the Chief Minister during the recent Global Summit. Such a mechanism, it said, would ensure timely and predictable disbursal of approved incentives, improving investor confidence.

The Chambers also sought the introduction of a one-time VAT dispute resolution scheme to unlock nearly Rs 5,000 crore of blocked capital, reduce long-pending litigation and enhance ease of doing business, while simultaneously enabling the government to mobilise substantial revenue. Emphasising MSME development, AP Chambers called for expediting the completion and operationalisation of 175 MSME parks proposed across all Assembly constituencies, with common infrastructure and plug-and-play facilities in select parks. It also stressed the need for node-level development within industrial corridors to translate policy announcements into tangible industrial activity across regions. The memorandum recommended rationalisation of the Professional Tax framework to reduce the tax and compliance burden on MSMEs. It also highlighted anomalies in property tax assessment, urging the government to introduce a separate ‘Industrial’ property tax classification instead of assessing industries under the commercial category.

Raising concerns over high diesel prices, AP Chambers sought rationalisation of fuel taxes to keep Andhra Pradesh competitive with neighbouring states. It further requested the scrapping of GO Nos 5 and 6 related to Autonagars and Industrial Estates and sought permission for regulated change of land use to support diversification and revival of stressed units.

The Chambers also sought enhanced budgetary support for tourism, aqua and food processing sectors, industry-aligned skill development, establishment of entrepreneurial development centres, and a targeted export-led growth strategy to leverage emerging global trade opportunities.