BudgetSpeak #8: Harish Shriyan: Exempt small- and medium-sized advertisers from service tax

02 Jul,2014

By Harish Shriyan

 

My expectations from the new Budget:

1. In general, the Budget should focus on containing inflation, investment on infra and power sector and create more jobs.

 

2. The kind of inflation we are witnessing today, the Income Tax exemption limit for the individual should be raised to at least Rs 5 lakh. This will ensure more money in consumers hand and promote saving.

 

3. We need to move away from a society of entitlement to a society of opportunities. Hence the Budget should focus on growth and providing more opportunities. The policy on reservation and entitlements need to be revisited. The government benefit should be restricted only to economically deserved and not on the basis of caste or religion.

 

On the industry front:

1. As the government wants to cover the whole cable industry to be digitized, providing proper infrastructure, rationalisation of tax and reduction in custom duty for the Set Top Box is important.

 

2. Implementation of Phase 3 FM radio expansion and allowing news on FM is crucial.

 

3. Small- and medium-sized advertisers should be exempted from paying service tax so that they can afford to invest more money on advertising and become more competitive in the marketplace. In print, there is no service tax. Likewise, it should be extended to other media as well.

 

Harish Shriyan is COO, OmnicomMediaGroup

 

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