Punjab Govt plans to expeditiously increase tax revenues from OOH

The Punjab Government is reportedly mulling over the plan to introduce a new outdoor advertising policy that will help the state machinery to mop up more tax revenues from OOH advertising in the state. Navjot Singh Sidhu, a cabinet minister of the government, was quoted saying that the Government sees the opportunity to drive up annual tax revenues from outdoor advertising from a mere Rs 25 crore now to over Rs 300 crore. Punjab Government’s tax revenues from OOH is a mere fraction of what neighbouring state Haryana nets from OOH advertising – estimated at Rs 200 crore.

“Out of the Rs 25 crore, Rs 10 crore comes from Mohali, Rs 2.5 crore from Zirakpur. Ludhiana alone has the potential to generate income of Rs 150 crore per annum,” said Sidhu, while adding that toothless outdoor advertising policies have created loopholes for various entities to do business without paying taxes.

Quoting an example of “blatant violation of the laws”, he claimed that a particular company was given “undue” advantage in allotting advertisement contract on 82 bus shelters in Ludhiana and that it had resulted in a loss of Rs 100 crore to the state exchequer.