VIJAYAWADA: In a notable policy shift aimed at alleviating the financial burden on property owners while boosting construction activity, the state government has decided to implement a 50% discount on vacant land tax during the construction process. This change was made in accordance with recent amendments to the existing legislation approved by the state assembly.
According to the updated provisions, property owners engaged in construction will now only need to pay half of the vacant land tax during the construction period, effective from the start of construction until the occupancy certificate is issued. Officials believe this move will encourage timely construction and ease the financial strain on individuals and developers with vacant plots.
Municipal administration department principal secretary Suresh Kumar stated that the government aims to promote construction activity on vacant lands by offering this 50% concession on vacant land tax. This will be automatically applied during the designated construction phase, provided that all building permits and regulations are adhered to.
This policy also seeks to address the longstanding grievances of property owners who were required to pay the full vacant land tax even after commencing construction. By alleviating the tax burden, the government hopes to facilitate urban development and ensure optimal land use.
The state government has instructed municipal commissioners to enforce these new regulations uniformly, promoting transparency and consistency in tax collection.
Under existing rules, property owners must pay six half-year installments (equivalent to three years) of vacant land tax when applying for a building plan. The vacant land tax will continue until construction is completed and the civic body issues the occupancy certificate, at which point property tax will be applied.
