CREDAI Welcomes 50% Vacant Land Tax Relief During Construction

Visakhapatnam: The realtors’ apex body CREDAI has welcomed the state government’s decision to grant a 50 per cent concession on vacant land tax (VLT) during the construction period, describing it as a major relief for developers and property owners.

Under revised rules aligned with legislation recently approved by the State Assembly, owners undertaking construction will now pay only 50 per cent of the applicable VLT from the date work begins until the occupancy certificate is issued.

Officials said the move was expected to reduce the financial burden on developers, support timely completion of projects and improve utilisation of vacant land parcels.

E. Ashok Kumar, president of the CREDAI Visakhapatnam chapter, welcomed the decision and termed it a pro-development reform that would directly support the real estate sector. He said the measure would improve cash flow for developers during construction and reduce financial stress.

He noted that earlier, developers had to pay the full vacant land tax even after construction had commenced, which affected project viability. The revised policy corrects that imbalance, he said.

Ashok Kumar added that the measure would restore confidence among developers and attract fresh investment into the sector. The State government has directed municipal commissioners to implement the revised norms uniformly across civic bodies to ensure transparency and consistency in tax collection.

Earlier, property owners were required to pay VLT for six half-years, or three years, at the time of obtaining building permission, continuing until completion of construction and issuance of the occupancy certificate, after which property tax was levied.