Proposed GST slab of 35% is a deterrent for growth
As per a cross-country World Bank study on sugar-sweetened beverages, India has one of the highest tax rates for carbonated soft drinks (CSDs) at a total tax rate of 40 per cent as of 2023.
Blaming his predecessor Jagan Reddy for “abandoning” the capital city Amaravati and announcing the three-capital plan, Andhra Pradesh Chief Minister N Chandrababu Naidu on Wednesday said this has shaken the confidence of investors and destroyed the brand image of the state.
Releasing a white paper on Amaravati, the chief minister outlined how the previous government had “systematically weakened and destroyed” the greenfield capital city by stopping all construction work as well as withdrawing annuity to 2093 farmers and pensions to 4422 families who had given up land for pooling. The Andhra Pradesh Capital Region Development Authority’s (APCRDA) budget was allowed to lapse.
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The YSRCP government had also complained to the World Bank to stop funding worth USD 300 million. As a result of its complaint the Centre which was to release Rs 1,000 crore as grant to Amaravati also stepped back.
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The contract for the master architect for Amaravati government complex which had gone to noted architectural firm Fosters and Partners was cancelled as well.
With the state government not keen to develop Amaravati 122 out of 130 land allottees lost confidence and did not start any construction activity. The state also lost the opportunity for wealth creation and it was left with no capital as the ten years of sharing Hyderabad as a joint capital also came to an end.
As a result, the unfinished roads and buildings were damaged and cost escalated to an enormous amount. The credit ratings of Amaravati bonds were affected negatively. The brand image of the state suffered and the confidence of investors was shaken.
Blaming the former chief minister YS Jagan Mohan Reddy, the White Paper read “This is a case of one person destroying the future of the coming generations. We need to introspect if such persons should ever occupy a public office ever.”
The White Paper also stated that if the original plan had been implemented then 7 lakh jobs would have been created as well as Rs two lakh crore added to the state’s GDP.
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