The Greater Hyderabad Municipal Corporation is at it again. It is all set to give the contract of collecting advertisement tax on neon and glow signboards on commercial establishments to private agencies once again, despite suffering a loss of Rs 40 crore when it awarded the contract to private agencies earlier.
Between 2005 and 2010, two private agencies were given the contract at different times to collect advertisement tax on neon and glow signboards in the city. The GHMC was supposed to get Rs 58.13 crore in tax, but it got less than Rs 15 crore. While one of the agencies has gone to court demanding payment of the full contract amount, the civic body terminated the contract of the other agency following a public outcry.
Now, the GHMC has again invited tenders from private players for collection of the same advertisement tax. The interested agencies have to submit their technical and commercial bids before February 14, 2012. The successful bidder will be contracted to pay Rs 5 crore per annum to the GHMC for three years. As the GHMC has no idea how many neon and glow sign boards exist in the city, it has added the condition that it will not pay any commission or service charges up to Rs 5 crore in a year to the agency. In order to get service charges, the private agency has to quote the percentage, for anything above Rs 5 crore collections
What is more, the agency has to deploy tax collectors by giving them handheld machines to feed the data.
What is more, the agency has to deploy tax collectors by giving them handheld machines to feed the data.
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