In a major development all IBF members agreed to block HLL ads owing to non
resolution of payment of 5% service tax imposed by the government. Our
readers would remember that the government had imposed service tax of 5% on
all broadcasters. The issue has been simmering for quite some time now with
the broadcasters first trying to convince the goverment to drop the law and
then trying to pass the tax on to the advertisers. SUN TV is the only
network which has so far managed to successfully pass on the tax to the
advertiser owing to its complete dominance in the Southern market. Other
broadcasters however have found it hard to extarct the extra penny out of
the client's pocket.
Talks for resolving the matter are currently on and sources say that some
solution might be reached soon.