VIJAYAWADA: AP Chambers of Commerce & Industry Federation requested the government to announce a dedicated escrow account mechanism for industrial incentives (as promised by Chief Minister Nara Chandrababu Naidu during the recent global 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. AP Chambers further requested the introduction of a one-time VAT dispute resolution scheme to unlock blocked capital (estimated as `5000 crore), reduce long-pending litigation, and significantly improve ease of doing business. The scheme will also help the government to mobilise huge revenue. The Chambers submitted that rationalisation of the Professional Tax framework would substantially reduce the taxes and also compliance burden on MSMEs, which form the backbone of employment and economic activity in the State.

Source: Indian Express February 06, 2026 03:22 UTC