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Andhra Cuts Vacant Land Tax to 50% for Builders, Amends Leprosy Law

The Andhra Pradesh Assembly has passed amendments to the Municipal Act, reducing the vacant land tax to 50% for builders from the grant of permission until occupancy certification. The move aims to ease financial burdens and promote the ease of doing business in the construction sector. A separate amendment removes the term "leprosy" from municipal laws for modernization. The bills were passed during a budget session marked by protests from the opposition YSRCP.

Key Points: Andhra Pradesh Reduces Vacant Land Tax to 50% During Construction

  • 50% vacant land tax during construction
  • Ease of Doing Business push
  • Removal of 'leprosy' from laws
  • Transparency in construction processes
  • Part of Assembly Budget Session
2 min read

Andhra Pradesh Assembly approves bill reducing vacant land tax to 50% during construction

Andhra Assembly passes bill to halve vacant land tax for builders during construction and removes outdated 'leprosy' term from municipal laws.

"amendments to the Municipal Act were made to promote Ease of Doing Business - Minister Narayana"

Amravati, February 18

The Andhra Pradesh Assembly on Wednesday passed amendments to the Municipal Act aimed at easing financial burdens on builders and promoting transparency in construction processes.

The first amendment allows builders to pay only 50 per cent of the vacant land tax during the construction period, from the time building permission is granted until the issuance of the Occupancy Certificate. The second amendment removes the term "leprosy" from municipal laws.

The House passed an amendment allowing only 50 per cent of the vacant land tax to be paid during the building construction period. It also approved a bill to remove the term "leprosy" from municipal laws.

Minister Narayana stated that amendments to the Municipal Act were made to promote Ease of Doing Business. The changes were introduced to encourage builders and reduce the financial burden during the construction phase. Reforms were brought in to ensure greater transparency in building construction processes.

From the time building permission is granted until the issuance of the Occupancy Certificate, only 50% of the tax needs to be paid under the new provisions.

The Andhra Pradesh Assembly Budget Session began on February 11 with Governor S Abdul Nazeer's address, amid protest and sloganeering by Yuvajana Sramika Rythu Congress Party (YSRCP) leaders.

Former Chief Minister and YSRCP leader YS Jagan Mohan Reddy arrived at the Assembly to attend the Budget Session. He, along with party leaders, staged a protest outside the Assembly.

Addressing the House, Governor Abdul Nazeer said that the YSRCP government from 2019 to 2024 disrupted the momentum of growth and led to "total anarchy with breakdown of law and order."

He said, "The change in governance in 2019 disrupted this momentum. Systemic governance failures emerged, growth stalled, financial stress intensified, institutions destroyed, total anarchy with breakdown of law and order, arbitrary restrictions placed through misuse of Section 22A, and key sectors such as infrastructure, power, irrigation suffered serious setbacks."

"Disenchanted by these experiences, the people of Andhra Pradesh renewed their faith once again in my Government in 2024, granting an unprecedented mandate to rebuild the State. The decisive verdict of electing the National Democratic Alliance Government reflects their deep trust and confidence in the leadership of Chief Minister Nara Chandrababu Naidu garu, the committed partnership of Pavan Kalyan garu, Deputy Chief Minister, and the continued guidance and support of Prime Minister Narendra Modi garu," he added.

- ANI

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Reader Comments

S
Sarah B
While the tax relief for builders is good for business, I hope there are strict timelines attached. We don't want projects to be delayed indefinitely while they enjoy the tax break. The removal of the outdated term "leprosy" is a positive, inclusive step.
P
Priyanka N
Good policy, but the article is overshadowed by political mudslinging. The Governor's speech seems more like an attack on the previous government than a report on the state's progress. Can we please focus on development rather than blame games?
A
Aman W
Ease of Doing Business is crucial for AP's growth. This tax reduction will improve cash flow for builders. Hopefully, the benefits will be passed on to home buyers. The real test will be in its implementation.
K
Karthik V
The financial relief is welcome, but what about the common man? When will we see tax reductions for existing homeowners or measures to control the skyrocketing prices of cement and steel? The focus seems one-sided.
M
Michael C
Interesting to see the blend of economic reform and social sensitivity in one bill. Removing stigmatizing language from law is as important as economic incentives. A balanced approach to governance.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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