MCC likely to revise ad, ground rent rates

The revenue section of Mangalore City Corporation has submitted a proposal to finance and taxation standing committee on increasing advertisement budget of the corporation by three-folds by revising unscientific advertisement tax rates and ground rents.

The proposal is before finance and taxation standing committee, and it needs approval from the council.

If the advertisement budget increases by three-fold, it would jump from Rs 2.13 crore to around Rs 6.40 crore. At present, the corporation charges only one fourth of the advertisement rate fixed as per Karnataka Municipal Council Act 1976. If the proposal gets nod from the committee, the rates would just increase to 75 per cent of the government rule, said Revenue Deputy Commissioner K Raju Mogaveera to Deccan Herald.

In two months, the committee had convened one meeting, but no decision has been taken. The rates were revised earlier in 2013.

There is an allegation that advertisement agencies charge high for advertisement, but give peanuts to the corporation.

The 90 per cent of the revenue of the corporation comes from advertisement and there is huge demand. In 2014-15, the MCC has collected Rs 2.07 crore from advertisements, he said. The hike varies depending on types of advertisement and place to place, he added.

New income sources
He also said a proposal has been submitted to increase unscientific ground rents in the corporation limits. A total of 12 grounds come under the purview of MCC limits. Mangala stadium belongs to Youth Service and Sports Department. One has to pay bit more to organise sports competitions.

However, there will not be any charge for practising (for sports lovers) in the ground. The major objective of increasing revenue is to collect revenue for the maintenance of the grounds.

MCC Commissioner Hephsiba Rani Korlapati said as sources of income were less, discussion was held on identifying new sources in February. A proposal on increasing advertisement tax and ground rent, which are very low than government rates were put-up in the agenda. The increased rates are also less than the government rates. The additional revenue would help at least to clean up and renovate grounds, she said.

According to officials, at present the corporation charges just Rs 1,200 to Nehru Maidan per programme/event, but it has to spend several thousands to clean the area after the event. Moreover, the corporation does not charge for religious and political functions. The situation would change if proposal gets nod in the council.