Hyderabad: The Greater Hyderabad Municipal Corporation has not been collecting any fee on advertising that is done on vehicles, thereby losing out on an estimated Rs 150 crore annually. It is believed that about 6,000 vehicles, including buses, autorickshaws, cabs and vans feature advertisements, and can be taxed.
Sources said that the corporation could levy Rs 100 crore as tax on the advertisements featured on the pillars of Hyderabad Metro Rail.
Sources said the corporation had collected about Rs 40 crore during the previous financial year from 2,600 authorised hoardings. About 3,000 city RTC buses and about 3,000 cabs and autorickshaws that carry advertisements have not been billed.
The corporation can charge an autorickshaw Rs 1,500 for featuring advertisements, a bus Rs 4,000 and each cab Rs 3,000. Besides, sources said the corporation would generate Rs 100 crore through hoardings erected on Metro Rail pillars.
Static advertisements are categorised on their location and size and taxed accordingly:
Rs 3,000 per sq. m for S (special) category, Rs 2,750 for A category, Rs 2,500 B category and Rs 2,250 for C category hoardings on central dividers. For conventional hoardings, the corporation levies Rs 1,500 per sq m for S category, Rs 1,350 for A, Rs 1,200 for B and Rs 850 for C category hoardings.
The HMRL has advertised on 876 S category hoardings on central dividers.
The GHMC has been sending demand notices for the tax, HMRL is bargaining for a reduction in the rate. Both have written to the state government which is yet to take a decision.
The corporation has written to the government asking it to settle the issue for early payment of property tax pertaining to constructions and site development as per the agreement with HMRL and L&T. Several unaccounted hoardings if measured and charged according the corporation may generate Rs 100 crore.
The corporation is firm on collecting hoarding fee from HMRL as per the order given by the Supreme Court. According to these orders, the corporation can levy 75 per cent of property tax for providing full services, 50 per cent for partial services and 33.33 per cent for no service.
Sources said that the RTC had been not paying mobile advertisement charges since the last two years citing severe staff crunch.
Cabs have been evading payment of the tax. Less than 50 of them have been registered with the civic body.
Asked about the issue, a senior GHMC official said a survey would be conducted and every hoarding taxed to enhance revenue
