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Monday, 6 August 2012

Tax spanner in transport operators' ad revenue hopes

KOLKATA: Auto rickshaws, buses and taxis in the city will never look the same again. They will be wrapped in advertisement boards - a desperate move the state government is adopting to offset the prevent operators' from agitating on demand for a fare hike. 

The state has almost finalized the tax rates that operators will have to pay the state government for renting out vehicle space for advertisements. But the move is not going down well with operators and unions for several reasons. 

Auto rickshaw owners will have to pay the state annual charges of Rs 250 to Rs 500, depending on the space used for renting out. For buses and taxis, it will vary between Rs 500 and Rs 1,500 and this too will depend on the space used for advertisements. Buses may also have advertisements on electronic boards as well as television sets, the latter already adopted by some high-end long distance private buses for showing films. 

"These television monitors would be allowed within the city, which can constantly display advertisements," said an official. 

"The ideas may be innovative, but will come at a price for operators. The tax to be paid to the state government for this has not been finalized yet, but will be in the range of Rs 2,000 to 2,500," hinted an official. Also, the state government will slap charges on tableaux carrying advertisements, which is currently charged only by the Kolkata Municipal Corporation (KMC). The state's plan is to impose charges on this as high as Rs 10,000 annually. 

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