Ad industry wants Union Budget 2018 to reduce tax complexities
This budget is significant since it will be PM Modi led government's fifth and last full-fledged budget presentation before the 2019 Lok Sabha polls
Ahead of the crucial Union Budget 2018-19, which will be presented today, speculations are rife about its impact on marketing and advertising spends.
The budget is significant since it will be PM Modi led government's fifth and last full-fledged budget presentation before the 2019 Lok Sabha polls. There are high hopes that the budget will have a populist appeal as four big states - Karnataka, Rajasthan, Chhattisgarh and Madhya Pradesh go to polls this year. This in turn is expected to boost the consumer sentiment and have a positive impact on the overall AdEx.
Speaking about his expectations from the upcoming budget, Suresh Narayanan, Chairman & MD, Nestle India Ltd. said, "One of the key features that I would really want addressed in the budget is the whole agriculture and food processing sector. There is still enormous potential in agriculture and especially food processing that we have as a country. I think that can be addressed in terms of not only the measures to alleviate the agrarian stress that is being felt, it will definitely translate into positive outcomes for food processing. I think food processing cannot only be a key economic driver but can also generate the much needed employment that we look forward to."
As per the latest findings of the Economic Survey of India, the economy is expected to grow on the back of major reforms which would be strengthened further in the next financial year. The survey also states that the series of major reforms undertaken over the past year will allow real GDP growth to reach 6.75 per cent this fiscal and will rise to 7 to 7.5 per cent in 2018-19, thereby re-instating India as the world's fastest growing and major economy.
For Ashish Bhasin, Chairman & CEO, South Asia Dentsu Aegis Network, the complexities and inefficiencies in the payment of taxes needs to get addressed on priority. He expects the upcoming budget to address this issue which is also a big concern for the advertising industry. "The fact is that as the economy grows, the advertising grows too. Specifically for the advertising sector, I think the GST has not focused on the services part of it so far. It is supposed to help in the ease of doing business while in reality it's making it very complicated for the services industry. Advertising industry doesn't mind paying taxes but it doesn't want the complexities and inefficiencies in the payment of taxes and I hope they address this issue," added Bhasin.
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