Andhra Pradesh Assembly approves Bill for collecting only 50% of VLT during construction period

The Legislative Assembly on Wednesday passed the A.P. Municipal Laws (Second Amendment) Bill, 2026, enabling the government to levy and collect only 50% of Vacant Land Tax (VLT) during the period of construction of buildings in municipal corporations and municipalities, by taking into account the financial burden for builders and developers.

As per the legislation moved by Municipal Administration & Urban Development Minister P. Narayana, the VLT was being currently levied under the provisions of the A.P. Municipalities Act of 1965 and the A.P. Municipal Corporations Act, 1955, on lands not used exclusively for agricultural purposes and not occupied by or appurtenant to a building.

He said that representations received from various stakeholders, including CREDAI and NAREDCO, highlighted that the levy of full VLT during the construction period imposed an additional financial burden on builders and developers, thereby discouraging timely development of urban land and adversely affecting the real estate and construction sectors.

The government had, therefore, issued GO. Ms. No. 90, dated February 24, 2019, permitting the levy and collection of only 50% of VLT during the construction period (applicable from the date of grant of building permission until the issue of occupancy certificate or completion of building, or expiry of validity of permission, including extended validity, whichever is earlier) and duly made clear that the benefit would not apply to unauthorised constructions.

However, implementation of the G.O. was kept in abeyance due to the requirement of suitable statutory backing. Hence, amendment to the aforementioned municipal laws was being made to operationalise the intended policy.

The Legislative Assembly also passed the A.P. Allopathic Private Medical Care Establishments (Registration & Regulation) (Amendment) Bill, 2026, making registration mandatory for all AYUSH clinics, dispensaries, therapy centres and hospitals in order to prevent unqualified practitioners and quacks from exploiting the people by claiming to treat diseases through AYUSH systems.

Moving the Bill, Health Minister Y. Satya Kumar said the A.P. Allopathic Private Medical Care Establishment (Registration & Regulation) Act of 2002 was covering only allopathic clinical establishments and not the establishments delivering the AYUSH services and the A.P. (Andhra Area) Ayurvedic & Homoeopathic Medical Practitioner’s Registration Act, 1956, was covering only registration of institutionally qualified AYUSH graduates but not the AYUSH clinical establishments.

He observed that practising of AYUSH systems by untrained /unqualified people, which was tarnishing the image and reputation of AYUSH due to the absence of statutory monitoring regulations for AYUSH systems and the large number of ‘AYUSH clinics and hospitals’ that mushroomed in the State was a major challenge that required necessary action.

Therefore, the State government decided to include the AYUSH systems under the purview of Clinical Establishments (Registration and Regulation) Act of 2010. The Bill gives effect to the decision, thereby exercising necessary control on AYUSH clinics / hospitals in the private sector.