GST on Advertising Needs to be Rationalized at 12%: Ashish Bhasin on Budget 2019
Bhasin believes that India is poised for a decade or more of growth and some bold steps taken in this budget will help make that a reality.
Ashish Bhasin, CEO Greater South, Dentsu Aegis Network and Chairman & CEO India, made his remarks about what he expects from India’s new Finance Minister in Budget 2019.
“Advertising is a very sentiment-driven business in India. Anything that drives GDP growth, drives advertising growth even more. In fact, the rule of thumb is that for every 10% growth in GDP, advertising grows by 1.5%. So, the new budget needs to be growth oriented, needs to put more money in the pockets of the rural and urban consumers, to propel spending.
Further, there is an urgent need for tax reforms. Direct tax rates for both corporates and individuals need to be brought down noticeably and immediately. GST on advertising at 18% is just too high. It needs to be rationalized at 12% and the process and procedures need to be simplified as they are cumbersome, unproductive and wasting a lot of time.
India is poised for a decade or more of growth. Some bold steps taken in this budget will help make that a reality.”