VIJAYAWADA: The AP High Court has ruled that vacant land tax (VLT) cannot be imposed on land designated for recreational purposes under a city’s master plan unless it is converted for commercial use.
Justice N Harinath of the Andhra Pradesh High Court struck down a 2017 notice from the Vijayawada Municipal Corporation (VMC) demanding vacant land tax (VLT) of Rs 1.16 crore for 2013–16 on a 14,990-square-yard plot in Moghalrajpuram owned by VV Ramakrishna.
The city master plan allocated 0.35 cents for residential use and 3.26 acres for recreational purposes.
Ramakrishna had built sheds on 0.385 cents and paid property tax for them.
Senior advocate Chintala Vishnu Mohan Reddy argued that land for recreational use is exempt from VLT under Section 212(2) of the Municipal Corporation Act.
The VMC contended the land remained designated as a park. Justice Harinath ruled in favour of Ramakrishna, stating VLT cannot be levied on recreational land, and set aside the Commissioner’s notice.