A bureaucratic spat between two bureaus under the Addis Abeba City Administration is causing frustration and financial strain for the capital's advertising industry. The Construction Permit & Control Authority (CPCA) and the City's Revenue Bureau squabble over the mandate to collect advertisement service fees.

The CPCA's Advertisement Department accuses the Revenue Bureau of charging fees exceeding approved rates and collecting payments for outdated advertising methods banned under new city regulations. Despite a recent regulation eliminating traditional advertising formats such as banners and sheet metal, the Revenue Bureau continues accepting payments for these platforms, confusing advertisers.

The Bureau classifies these collected fees as taxes rather than service charges, inflating costs through penalties that sometimes double the actual fee amount without clear justification. This irregular practice has caused widespread frustration among advertising agencies, which find themselves burdened by excessive and seemingly arbitrary charges.

A recent letter from the CPCA detailed several operational difficulties. The Authority cited inconsistencies, stating the Revenue Bureau applies uniform charges across different advertisement categories, inflating fees sometimes threefold compared to authorised rates. The Authority says this has complicated its ability to issue permits "fairly and effectively."

Demeke Kebede, an outdoor advertisement permit officer at the CPCA, expressed exasperation with the current arrangement.

"We would prefer to collect the fee oursevles" he said "CPCA could efficiently handle the fee collection."

Werkenesh Seboka, deputy director of the Revenue Bureau, has instructed all branch offices to resolve these discrepancies directly with the CPCA. However, despite multiple directives and repeated concerns raised by the CPCA, the issue persists, and advertiser complaints continue.

Over 300 licensed advertising agents operate in the city. This year alone, the CPCA collected approximately 15 million Br from issuing and renewing advertisement permits. Over the past nine months, it has issued and renewed 12,112 permits and upgraded 17,015 from traditional to digital formats, adhering to the new standards.

A sharp increase in permit fees instituted three years ago has worsened the regulatory and administrative issues. Billboard advertising costs rose dramatically from 800 Br to 5,000 Br, and digital advertisement permits surged from 5,000 Br to 15,000 Br. The increased financial burden has intensified pressure within the industry, leaving many companies financially strained.

Akiya Teshome, CEO of Akiya's Advertising and an auditor at the Ethiopian Advertising Association, blamed the Revenue Bureau’s rigid payment system. His company delays permit applications until after July 8, illustrating its frustration with a stringent payment structure that penalises those unable to meet fixed deadlines. Akiya stated the unfairness of the current system, noting how it overlooks advertising companies' varied operational calendars.