The Andhra Pradesh State bifurcation bill suggests, revenue of Hyderabad not to be shared to the residual Andhra Pradesh. However this particular clause can pose significant problems going forward for both the state as the big businesses have their foot in both the state. According to the 2012-13 figures available, Hyderabad contributed nearly half ie., over Rs 34,000 crore to the state’s total revenues of Rs 70,548 cr. There are 40 state-level public enterprises and many private enterprises in Hyderabad. So, the taxes obtained from them forms Hyderabad revenue.
However, many of these enterprises do not only operate in Hyderabad, the are spread across the length and breadth. It can not be that way they as they do their operations under AP government jurisdiction and pay taxes to Telangana government. So it has to be worked out how these enterprises compensate state taxes to both the states. A tax regime in which taxes are paid on the basis of economic activity is to be brought in to effect.
