BBMP takes its payment system online for advertising department

Earlier this year, BBMP (Bruhat Bengaluru Mahanagara Palike) council, had banned all formats of outdoor advertisement. However, with the new administrator and commissioner, this ban has been revoked and have introduced an online system to streamline the permissions & payment process to increase the revenue of the advertising department.
  
In an exclusive interview with Dr V N Prasad, Additional Commissioner, IAS, we find out about this new system and its impact on the outdoor landscape of this burgeoning city. Edited excerpts.

Eight months ago, the BBMP banned all kind of outdoor advertising in Bangalore. What prompted this sudden shift from the ban to an online system?

Advertisement is an important source of revenue and a city like Bangalore can provide maximum revenue from advertisements to the Karnataka Government. But we must focus on tapping the revenue from advertisements by regulating it in a proper way. The new administrator and the commissioner along with the advertisement department officials found out that the BBMP was losing a huge amount of revenue by this ban. So they decided to remove the ban on advertisements. The Karnataka Government informed us about removing the ban on April 26th 2015.

The Karnataka Municipal Corporation Act 1976 section 134 to 137 deals with advertisements, where the advertisements by-laws of 2006 clearly says that before frame or ban of any law, first the authority must be changed or delete the existing advertisement by-laws and then amend the act which is not in the preview of the council itself.

How was the online system created?

Previously, the advertising department was completely manual. Most people were unaware about the concerned authority giving permits for outdoor advertisements. Permissions were issued in the head office, zonal level or sometimes even to the ward level. Files were also not maintained properly. There were so many cases based on this in the Lokayuktha, with some cases still running in the court. In order to clean this system, we wanted to introduce a paperless office to the advertisement section. Following a discussion with our IT engineers, we started computerising the advertisement department.

You initiated this online system for BBMP's advertising department. What challenges did you face while creating this online system?

The new system had to be acceptable to all level of officials in the initial stage. If the system is complicated then the staff may not accept it. For this, we planned the online system in a simple way by adding some security features on it. So in version one, we have introduced a smooth and easy system. It took almost 2 ½ months to launch the software.
 
Once the software was done, it was presented to the Commissioner along with training sessions with different level of officers. The sessions completed successfully and the system was running smoothly after sorting out some bugs.
 
Previously the advertiser used to give an official letter and DD with some arbitrary amount to seek permission for a new hoarding or to renew the existing one. However, by-laws specify that there are 7 to 8 documents which have to be produced to get the permission. The online system makes it easy for advertisers to upload the required documents to the website directly. The officials are also feeling secure with this online system.

Have you implemented any new features in the online system, which was not existing in the manual system?

Yes, we have made changes in the new system. We have now created a single bank account, where the entire payment is only done through net banking, credit or debit card. In the new system, we have introduced an inspection by the revenue inspectors. This is a condensed form of by-laws which points out the aspects to be inspected during the visit.

The application is downloadable and serial numbered. After the verification of all documents, the concerned revenue inspector will sign and reload in the website. Physical verification is mandatory for hoarding permission. While, all other procedures will be done only through online system.

Do you think the new system will be beneficial for tax collection and revenue generation?

In July, a survey conducted by BBMP showed that the city had 6119 hoardings. But, permission have been granted only to 2297 hoardings. Around 4000 hoardings are existing in the city without paying any tax for many years. Now with the online system, a computer generated random number will be given to each hoarding. The advertiser will have to display this number below their hoardings compulsorily.

A deadline will be given to the advertisers to display the number in their hoardings provided by the authority, failing which the hoardings will be deemed as illegal and the authority will definitely take action against it. We are hoping that advertisers will pay the taxes at the correct time. Earlier the advertisement tax was only 25 to 35 percent. Now the tax amount has increased to Rs 260 per square feet in prime roads and Rs 200 for other roads.

Will these changes in the online system remain permanent?

Yes, it is permanent. The changes have already been submitted to Lokayukta and proposal to Sakala also. The timeline fixed for permission to agency registration or renewal will be completed in 15 days and for self or commercial hoardings will take 22 days. This proposal has been sent to the Government, which will issue an order for the same.

Will all outdoor media formats be part of this online system?

Yes, all the outdoor media will come under this new system. Permission for self and commercial hoarding are only allowed through online. Currently, bus shelters are being tendered by the BMTC. As for pole advertisements, we have decided to make an e-auction for this format. One more important thing is shop front advertisements. According to the BBMP advertisement by-laws, any advertisement in front of a shop or commercial establishment which is about 10 square feet has to pay 15 percent advertisement tax under self-assessment scheme. For this, we have launched a new system where shops and commercial establishments should pay shop advertisement tax under self-assessment scheme through online system.

How you are going to handle the illegal outdoor media in Bangalore?

It is very simple. We have to give them a deadline saying that unless they display the permission number on their hoardings within the period, the advertisement hoardings will be considered as illegal. The authority will keep all information's regarding the hoardings. We will definitely take action against illegal media.

Are you planning to retain the old system along with the new online system?

No, the old system has been completely stopped. There is no need of going back to the manual system, as the new system is running under the government order. Using this online system, people can easily apply for permission by sitting at home or office. It reduces the interaction between advertiser and the officials.

Your message to the media owners through our magazine.

I urge upon all the advertisers to follow the new online system. Ensure that advertisement tax is paid at the correct time and penalty if any, without delaying it to BBMP. Do things legally. BBMP needs revenue and funds for its smooth functioning, so don't fail to pay your taxes at the right time.