AP govt offers 50% VLT relief to boost construction activity

Vijayawada: In a significant policy shift aimed at easing the burden on property owners and encouraging construction activity, the state govt decided to grant a 50 per cent discount during the construction. The govt amended the rules governing vacant land tax payments. The move aligns with the recent amendment to the legislation approved by the state assembly.As per the revised provisions, property owners undertaking building owners will now be required to pay only 50% of the vacant land tax during the construction period. The relief will be applicable from the date of commencement of construction until the issuance of the occupancy certificate. The officials said the decision is expected to incentivise timely construction and reduce financial pressure on individuals and developers holding vacant plots.Municipal administration department principal secretary Suresh Kumar said that the govt has decided to grant 50% concession on vacant land tax to encourage more construction activity in the vacant lands. He said that it will be automatically applicable during the defined construction phase, subject to compliance with building permissions and regulations. The policy is also expected to address long-standing concerns from property owners who had to pay full vacant land tax even after initiating construction. By rationalising the tax burden, the govt aims to promote urban development and ensure better utilisation of land resources. The state govt directed the municipal commissioners to implement the revised norms uniformly, ensuring transparency and consistency in tax collection.As per the existing rules, the property owners should pay six half-years (three years) of vacant land tax while filing application for the building plan. The VLT will continue till the completion of the construction until the civic body issues the occupancy certificate and levies the property tax.