Tamil Nadu Chief Minister Jayalalithaa opposed tax-concessions to Andhra Pradesh and Telangana. In the letter written to Prime Minister Narendra Modi, She pointed out declaring AP and Telangana as Tax Heavens would only make the Industries in neighboring states relocate to these newly bifurcated state.
Jayalalithaa cautioned Modi providing area based concessions for the she of promoting economic development in Andhra Pradesh and Telangana will only make the neighboring states totally uncompetitive.
The Chief Minister warned, "The Statement of Revenue Foregone presented indicates total revenue foregone through such area-based tax concessions during last fiscal was Rs 9,267.5 crore in direct taxes and Rs 18,000 crore in excise duty. The fiscal impact would be much bigger if such concessions were offered to the newly bifurcated states."
Will Jayalalithaa's statement make Narendra Modi take a U-turn on offering tax-concessions to Andhra Pradesh and Telangana?
Jayalalithaa cautioned Modi providing area based concessions for the she of promoting economic development in Andhra Pradesh and Telangana will only make the neighboring states totally uncompetitive.
The Chief Minister warned, "The Statement of Revenue Foregone presented indicates total revenue foregone through such area-based tax concessions during last fiscal was Rs 9,267.5 crore in direct taxes and Rs 18,000 crore in excise duty. The fiscal impact would be much bigger if such concessions were offered to the newly bifurcated states."
Will Jayalalithaa's statement make Narendra Modi take a U-turn on offering tax-concessions to Andhra Pradesh and Telangana?