Delay in approving ad policy hits BBMP coffers

Approved amid much fanfare at the BBMP Council meeting, more than a year ago, the new advertising policy was anticipated to fill the coffers of the cash-strapped Bruhat Bangalore Mahanagara Palike (BBMP).

However, the situation appears to be much the same as it was when the policy was prepared and approved by the corporators. 

For, the advertisers’ lobby, backed by various industries, has been allegedly stalling the approval by the State government of the policy.

“The new advertisement policy was supposed to earn us close to Rs 150 crore. But, the State government is yet to take a call on approving the policy,” said a senior Palike official. 

According to officials, the advertising lobby is sceptical about the increase in the tax which is going to be levied on the hoardings and billboards across the City. 

“The new policy proposes to increase the tax from Rs 5 to Rs 50, considering the zonal regulations in the City. The proposed tax hikes have created a panic among advertising agencies and industries which use them to promote their products,” said an official.

The BBMP is currently reeling under serious revenue ‘under collection’ by the advertisement department.

Following the review of the department, it was noted that the Palike was able to generate only Rs 40 crore, which is below expectation.

The fall in tax collection has been attributed to alleged laxity among BBMP officials. Taxation and Finance Committee Chairman Muneendra Kumar told Deccan Herald that the new policy on advertising tax will be approved in the next ten days. 

‘Promised’

“The State government has assured us that the new policy will get the Cabinet’s clearance,” he said.

Kumar believes that Palike would earn Rs 200 crore annually in taxes once the new policy is implemented. 

The new policy envisages reclassification of advertising zones in order to increase revenue generation. For example, M G Road and Brigade Road will see 100 per cent increase in advertising rates.