Nagpur Municipal Corporation plans to hike ad tax rates

Nagpur Municipal Corporation is putting forth a proposal to the Standing Committee today for an upward revision of taxes on city-based outdoor display sites that include hoardings, wall posts, and other such formats. The civic body is seeking a 25% increase in tax rates as under The Outdoor Advertising Policy, 2001 that was amended in 2010.

Unlike some of the other cities where the industry had cited that the authorities took arbitrary decisions on advertising tax increase, in Nagpur the outdoor property concessionaires were aware of the impending hike in rates. “We are absolutely comfortable with the revision of site rates. After 2002, Municipal Corporation is going to revise the rates for the first time. Therefore, we support the corporation in this step,” a media owner told Media4Growth.

Currently, the NMC charges Rs 17.5 for up to 1 sq. m. for hoardings or wall posts wherein after the increase in rates it will be around Rs 22 per sq. m. And sites with neon slides and lanterns will be charged Rs 88 for up to 1 sq.m. The rates for different sizes will vary from site to site.

“The rates have been kept nominal which is not going to affect our profit margins. Moreover, media owners who are willing to do business with proper legality and transparency will agree to pay despite the hike,” said the media owner.