Advertisement, signboard, poster and hoarding tax forms an important revenue component of any civic body, more so in a commercial capital bustling with trade and commerce. But, welcome to Margao where the local civic body has been found wanting in exploiting the huge revenue potential from advertisements and hoardings. Indeed, it may seem strange that when the annual revenue from advertisements and hoardings ought to have been over a crore of rupees, what the Margao Municipal Council earns in reality from this head is peanuts – less than Rs 10 lakh to be precise.
A glance at the municipal budget estimates on the advertising tax paints a grim reminder that all is indeed not well on this head. Contrary to the general perception that the Margao municipality can earn minimum Rs one crore from advertisements and hoardings tax, the civic body’s projected revenue on this head is always pegged at Rs 25 lakh. What’s shocking to note is that the civic body finally ends up in earning less than Rs 10 lakh every year from advertisement tax for reasons known best to the civic babus. In the financial year 2011-12, the MMC earned revenue of Rs 8.80 lakh from advertisement tax, while the revenue rose up marginally to Rs 9.90 lakh during the corresponding period next year.
Officials in the know said thousands of advertisement boards put up by shops and establishments, besides offices across the city, have not been brought under the tax net for strange reasons. Suggestions that the civic body constitute cells to survey each and every building to get the sign boards registered have not made much headway in the corridors of the civic body.
That’s not all. Sources said that it’s two years now since the civic body has stopped collecting tax on hoardings on the plea that the matter is pending in the courts. That has, however, not stopped the advertisers from displaying their advertisements nor has the civic body made any attempt to stop them from displaying the advertisement pending the court’s decision, causing a huge revenue loss for the Civic body.
Says former MMC Chairperson Savio Coutinho: “It is indeed a pity that the civic body today does not charge fees or rent on hoardings standing in the Municipal property under the excuse that it is a court matter.”
