Budget extends stimulus salve for print media
"Since print media is still passing through difficult times, I have decided to extend the stimulus package for another six months...," Pranab Mukherjee said in his budget speech.
"For print media it is positive. Another six months of extension will boost their revenue," Anand Shah, an analyst with Angel Broking, said.
In February, a stimulus package for the industry included a waiver of 15 percent agency commission on directorate of advertising and visual publicity (DAVP) advertisements and a 10 percent increase in the DAVP rates to be paid as a 'special relief' subject to proof of loss of revenue in non-governmental advertisements.
DAVP is the publicity arm of the federal government.
The global economic downturn hurt advertisement revenues as key advertisers such as auto, airlines, real estate and retail players were forced to cut ad spend as consumer demand plunged.
However, the extension does not include broadcast media which too had sought similar relief, Shah said.
The finance minister also abolished fringe benefit tax (FBT), which analysts said, would help media and entertainment industry as significant expenditures were subject to FBT, pushing costs.
"The introduction of goods and services tax (GST) by April 1, 2010, would streamline the service tax and value added tax," said Farokh Balsara, partner and national leader, media and entertainment practice at Ernst & Young. link....
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