E-procurement policy to boost ad revenues

BANGALORE: After consistent failures to implement the advertisement policy mentioned in the 2010-11 Budget, the Bruhat Bangalore Mahanagara Palike (BBMP) has now come up with a policy to ensure revenue from the advertisers in the city. The Standing Committee on Taxation and Finance (T&F) of the Palike has now come up with a draft plan, which the sources claim, can increase revenue to the tune of Rs 200 crore.The policy also comes after the court directed the BBMP to come up with a ‘clear’ policy on advertisement.Speaking to TNIE, T&F Committee Chairman Manjunath Raju said that the new licenses will be given through e-procurement. “All the rights will now be subjected to auctioning”, he said.Pointing out that all three categories of properties, Corporation owned, private owned and self properties, would now be given out only through auction. “e-procurement will ensure transparency and auctioning will fetch best prices,” he said and added that this way, there will be no way to escape without paying their dues.“The auctions will start at base prices at zonal levels,” he said.Stating that traffic medians, traffic umbrellas, pole kiosks and many glow sign boxes, owned by the Palike can be taxed easily, he said that this forms nearly 50 per cent of the total expected revenue in advertising.Clarifying on the earlier hurdles for collecting taxes, he said that since there was no clear policy, courts had given a stay on many of the hoardings in the city. “The existing hoardings may not be removed, but would be regularised by collecting taxes,” he clarified.According to the T&F committee chairman, the Karnataka State Cricket Association (KSCA) would also be expected to participate in the auction, as their earnings were high from advertisements.On December 30, 2010, senior Congress Corporator K Chandrashekar said that KSCA had disrespected the Council by not giving “passes” to corporators.“We have given them the land and are not charging them any commercial taxes.They are supposed to give passes to all 198 members as a token of gratitude for the BBMP’s generosity,” Chandrashekar had argued and wanted the Palike to charge hefty fines on the cricket body. However, the decision was dropped when the corporators were given passes.