The Andhra Pradesh government has introduced a 50% reduction in vacant land tax (VLT) during the construction phase, aiming to ease the financial burden on property owners and encourage faster development.
The decision follows a recent amendment to the rules approved by the state assembly. Under the revised provisions, property owners undertaking construction will now pay only half the VLT from the start of construction until the occupancy certificate is issued.
Officials said the move is expected to incentivise timely project completion and reduce financial pressure on individuals and developers holding vacant plots. It also addresses long-standing concerns, as owners were earlier required to pay the full tax even after construction had begun.
Municipal Administration Principal Secretary Suresh Kumar stated that the concession will be automatically applicable during the construction period, subject to compliance with building approvals and regulations. He added that the policy would support better utilisation of land and promote urban development.
The government has directed municipal commissioners to implement the revised rules uniformly, ensuring transparency and consistency in tax collection.
Under existing norms, property owners are required to pay six half-yearly instalments (three years) of VLT at the time of applying for building approval, with the tax continuing until construction is completed and the property transitions to regular property tax after occupancy certification.
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