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Bumper Offer! Seemandhra To Be Tax Free State
By: Tupaki Desk | 3 Aug 2013 9:01 AM GMT
Congress government that has bifurcated the state without giving much clarity about the infrastructural developments they will undertake in Seemandhra, is now getting ready to lure the people of region with yet another offering. Much to anybody’s surprise, Congress is getting ready to make a first Tax free state in India.
The outbursts and protests that are shaking Andhra Pradesh at the moment are making Congress high command to think about alternatives to silence the Seemandhra agitators. In fact Sonia Gandhi has asked her commanders like Ahmed Patel, Ghulam Azad and Digvijay to come up with master strategies that can lure Seemandhra people. Among one such strategy, Congress party is actually coming up with the idea of tax haven, such that international companies that invest in India take ‘State Of Andhra’ as a best option for investing. Both IT industries, Finance and Industrial sectors may get a boost in the region, if at all the state is tax-free.
But on the other hand, Congress may get severe opposition from other Special Economic Zones in the country, with this move. IT hubs in Bangalore, Hyderabad and Pune will lose sheen if Congress gives this special status to Andhra Pradesh, as IT companies generally prefer a tax-free place where they can amass huge profits even during recession. For this reason, Congress is contemplating the idea of a 20 year tax-free plan in Andhra, after which, the taxes will be normal like they are in other parts of country.
On the other hand, if at all state is made tax-free, investments will come and business will develop, but how far that will fill the treasure of government. With no taxes, there will be no income for government, and how will they imply welfare schemes? The strategy of tax-free haven is good idea, but it needs to be fine tuned such that nobody will lose in the end.
The outbursts and protests that are shaking Andhra Pradesh at the moment are making Congress high command to think about alternatives to silence the Seemandhra agitators. In fact Sonia Gandhi has asked her commanders like Ahmed Patel, Ghulam Azad and Digvijay to come up with master strategies that can lure Seemandhra people. Among one such strategy, Congress party is actually coming up with the idea of tax haven, such that international companies that invest in India take ‘State Of Andhra’ as a best option for investing. Both IT industries, Finance and Industrial sectors may get a boost in the region, if at all the state is tax-free.
But on the other hand, Congress may get severe opposition from other Special Economic Zones in the country, with this move. IT hubs in Bangalore, Hyderabad and Pune will lose sheen if Congress gives this special status to Andhra Pradesh, as IT companies generally prefer a tax-free place where they can amass huge profits even during recession. For this reason, Congress is contemplating the idea of a 20 year tax-free plan in Andhra, after which, the taxes will be normal like they are in other parts of country.
On the other hand, if at all state is made tax-free, investments will come and business will develop, but how far that will fill the treasure of government. With no taxes, there will be no income for government, and how will they imply welfare schemes? The strategy of tax-free haven is good idea, but it needs to be fine tuned such that nobody will lose in the end.
