Andhra Pradesh Chief Minister Y S Rajasekhara Reddy turned down the proposal of bringing a further hike in property tax to increase the revenue of local bodies.

The minister has also expressed his displeasure over the manner in which the municipalities and municipal corporations raised the property tax even after the dissent of the state government for the same.

Reddy has asked the municipal administration department to issue a fresh government order canceling the revision of property taxes for residential purpose after 2004.

Instead of making the things worst for common man as far as buying the property is concerned, municipalities should think of another way to bring improvements in their non tax revenue.

The municipalities have also been assigned the work of identifying lands to develop commercial property  to add to their income.  If it is a government land, municipalities need not pay for it. On the other hand, if it would be a private land, the expenditure will be borne by the state government.

Commercial complexes would be developed on a public private partnership (BOT). The local bodies will be permitted to use the revenue generated from such complexes to execute other development activities.

The minister also agreed for outsourcing necessary staff like managers, sanitary inspectors, bill collectors and ministerial staff by the municipalities.