• June 25, 2024
• advertising
• Web Desk

The All Pakistan Newspapers Society (APNS) and Pakistan Broadcasters Association (PBA) have strongly appealed to the government to reconsider a proposed amendment in the Finance Bill 2024-25, which limits the deductibility of sales promotion and advertising expenses. This legislative change could significantly increase tax liabilities for the media sector, affecting particularly small channels and newspapers, potentially leading to closures and consequent job losses.

In their separate letters to Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb, both organizations outlined the severe economic pressures already faced by their members. The contraction of the documented economy, combined with a lack of innovation and sluggish economic growth, has left the industry vulnerable.

The proposed budget suggests a 25% cap on the deduction of total sales promotion and advertising expenses in tax returns, a move that APNS and PBA argue would not only heighten their financial burden but also deter foreign direct investment (FDI). “Our effective tax rate is already the highest in the region. This bar on claiming certain expenses will further reduce our competitiveness,” stated the APNS.

Further expressing their concerns, the PBA emphasized the negative ripple effects of such fiscal policies. “Implementing short-term fiscal measures without considering their long-term impacts on the documented economy is not sustainable,” the letter read. It stressed that such policies would penalize long standing businesses, increasing their operational costs unfairly.

Both bodies urged the government to adopt a more considerate approach to economic reform, aligning with global best practices and fostering an environment conducive to sustainable growth. They highlighted the importance of patience and resilience during economic downturns and pledged their continued support to the government’s efforts to stabilize the economy.