Amaravati, February 18, 2026: The Andhra Pradesh assembly approved a key amendment to municipal laws, reducing Vacant Land Tax to half during the construction phase of buildings in corporations and municipalities.
VLT applies to non-agricultural vacant land not tied to a building. Previously, full tax applied even as projects progressed; now, the 50% rate covers the time from building permission grant to occupancy certificate, completion, or permission expiry whichever comes first.
The change activates a 2019 government order previously on hold without legal backing. It excludes unauthorised builds.
Municipal Administration Minister P. Narayana explained the move addresses stakeholder concerns from groups like builders' associations, who said full VLT added financial strain and slowed urban land development.
