Telangana Government was made an appeal to 14th Finance Commission for financial assistance to the new state. TG agreed that revenue to the Government was reduced on passing of every month. After the division of the state, most of the AP VAT dealers were shifted to Andhra Pradesh from Hyderabad. TG predicts and worried that Hyderabad would lose its income further after 10 years of common capital status.
“It seems that we have symptoms on reduction of revenue after the formation of the state on June 02nd this year” Telangana Government visualized real picture to 14th Finance Commission. As per Telangana Government stats, more than 3K VAT dealers and commercial organizations have shifted their ROs to AP. By this, Telangana Government lost the revenue from Stamps, Registration and Excise areas.
After announcing the Capital in Vijayawada, all Real estate Companies in Hyderabad are queued to Vijayawada. The following stats were submitted to 14th finance commission.
Sector July August
Petrol 552 crores 534 crores
Liquor 734 crores 625 crores
Total Tax
Income 2558 crores 2322 crores
