Andhra Pradesh Government Offers 50% VLT Relief to Boost Construction Activity

Vijayawada, April 22: The relief will be applicable from the date of commencement of construction until the issuance of the occupancy certificate.

Key Provisions

• Discount: 50% on vacant land tax during construction

• Applicable period: From construction commencement to occupancy certificate issuance

• Condition: Subject to compliance with building permissions and regulations

• Automatic applicability: During defined construction phase

Background

As per existing rules, property owners had to pay six half-years (three years) of vacant land tax while filing application for building plan. VLT continued till construction completion and OC issuance.

Government's Objective

• Incentivise timely construction

• Reduce financial pressure on individuals and developers

• Promote urban development

• Ensure better utilisation of land resources

• Address long-standing concerns of property owners who had to pay full VLT even after initiating construction

Official Statement

Suresh Kumar, Principal Secretary of Municipal Administration Department, said: "The government has decided to grant 50% concession on vacant land tax to encourage more construction activity in vacant lands. It will be automatically applicable during the defined construction phase, subject to compliance with building permissions and regulations."

Implementation

The state government directed municipal commissioners to implement the revised norms uniformly, ensuring transparency and consistency in tax collection.