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     Kishorek111 Kurra Bewarse Username: Kishorek111 Post Number: 1806 Registered: 04-2004 Posted From: 73.71.157.48 Rating: N/A |
So much noise everywhere on special status/special package without much substance in the last few days... so based on what I came to know in these days, putting it here. You can decide what is good and what is bad. 1. Special status and tax incentives are completely different. MMS only promised special status for AP in the parliament. 2. Tax incentives are given to investments in very limited sectors not all that too for a short period of time like 5 years. 3. Tax incentives were put in the re-org bill. Section 94. (1) The Central Government shall take appropriate fiscal measures, including offer of tax incentives, to the successor States, to promote industrialisation and economic growth in both the States........ this means if given, both AP and Telangana should be given Tax incentives. This would be a big dis-advantage to AP since Telangana has Hyderabad. 4. With SS alone, AP would get around 2000cr/year. 5. From idea to realization, it takes at least 3 years for most of the industries. And in less than 2 years, incentives are gone.. That is why many companies set up small offices in those states to avail tax benefits but didn't move their operations. Once the tax incentives are gone, they moved back. 6. With the intro of GST this June, no state would get tax benefit. So even if AP/Telangana would have got tax benefit it would have been for a very limited time. |