tps: Eliminate 18% GST on Broadcast Media Ads or Reduce to 5%: From News Broadcasters Association to FM
In a letter to Finance Minister Nirmala Sitharaman, the NBA said ads were critical to newscasters’ revenues and that consumer companies had either cut or deferred ad spending, creating major cash flow problems for broadcasters.
âAds are an integral and essential part of the business and the primary source of revenue for newscasters, who have come under great pressure during this pandemic / lockdown,â the NBA said in the letter.
The association pointed out that advertising companies were pressuring broadcasters to defer due payments and requesting more time beyond the 60-day credit period.
The biggest concern of newscasters was with fundraising and facing a period of negligible revenue over the next 30-90 days.
The fact that ad bookings are declining is also worrying.
âAs news broadcasters face the financial challenges of collecting dues, we also face serious issues with canceling advertising inventory / release orders and inventory reservations below 50%, even for top rated news channels, âNBA wrote.
If the current trend continues, broadcasters believe the next two to three quarters will be hit hard and a partial recovery can only be expected towards the end of the year.
“In these difficult circumstances, as part of the stimulus package, we ask you to remove the 18% GST on advertising or reduce it and bring it down to the level of the newspaper industry, this that is to say at 5%, “urged the NBA.
In its letter, the NBA also said that in order to ensure standards of social distancing and ensure the safety of editorial staff, the newscasters have taken various measures, including making other arrangements inside. and outside the premises for information gathering and reporting.
“This has resulted in an exponential increase in operating costs for news broadcasters during the current pandemic,” the association said.
Previously, the NBA wrote a letter to the Ministry of Information and Broadcasting (MIB), seeing the postponement of transportation fee payments owed to Prasar Bharati for Free Dish from March 31 to July 2020, and a concession of 90 days on the transport amount of Free. Plate.