MCC advertisement tax collection reaches new high

Increase in rent, new medium help in reaching the target

MCC advertisement tax collection reaches new high

The Mangalore City Corporation Revenue department has registered an increase in the income collected through advertisement tax for the fiscal year 2013-14. The advertisement tax collected by the MCC in the year 2012-13 was Rs 81, 05,031 and the tax collection has doubled by reaching  Rs 1, 78, 41,326 this year.

According to the MCC advertisement tax Dealer Credit Balance (DCB) of 2013- 14, there are 894 hoardings in the MCC limits, including the permission issued during the month of March (27 hoardings). Under demand, the opening balance was Rs 68.04 lakh and the current demand was Rs 1, 80, 19,000. In total an amount of Rs 2, 48, 23,000 was expected as the advertisement tax. The MCC has achieved a new height by collecting Rs 1, 78, 41,326 this year, including Rs 31.85 lakh in the month of March. The difference between demand and collected amount (balance) is Rs 9.09 lakh.

New mediums

Speaking to Deccan Herald, MCC Revenue Officer Praveenchandra said that 20 per cent hike in the ground rent for government advertisements and advertisement tax for private advertisers is the main reason for increasing the ad revenue.

“In addition, tender was called to install advertisement on new mediums like road dividers and poles, which received good response. Authorisation of each hoarding was checked and demand was revised,” he said.

When asked about ban on banners in the view of Lok Sabha election code of conduct in force, Praveenchandra said: “Compared to hoardings, the income from banners is less. However, there is permission for tying cloth banners and we collect Rs 120 for each.”

Policy matters

In 2010-11, the MCC had received Rs 82 lakh from advertisements which was a negligible amount if one looks at the annual income of the MCC, which is more than Rs 40 crore. In 2011-12, during the period of Vijayprakash as Commissioner, the MCC had adopted an advertisement policy with 16 guidelines for the first time.

The Corporation had expected that the income would reach Rs two crore, which would be around five per cent of the total income. However, it did not happen immediately. At least, after two years, the MCC is nearing the target in advertisement tax collection. “This year, we would reach Rs two crore,” said a senior official in the department.

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