Kathmandu, August 21
The Advertisement Board of Nepal has upped its interventions to make advertisement agencies’ business more transparent after the Council of Ministers passed the first amendment to the Advertisement Regulations 2019.
With the new Regulations in place, the wrong practices observed in the field of advertising business are likely to end.
As per the provision of the Regulations, the media houses will now have to submit the rate of advertisement to the Board every year and the Board will then release the rates on its website.
The advertisement market of the country is estimated to be around Rs 5 billion.
Chairman of Board Laxman Humagain said the new provision shall ensure transparency in the advertisement market since payment for advertisement will be made only after the advertisement agencies submitted the bill given by the concerned media house to the advertiser.
For the service, the advertisement agencies are eligible to receive only a 15 per cent service charge.
“With the clear provision on Regulations, this will help stop the leakage in the advertisement business and will increase the scope of tax,” Humagain said.
The board also believes this will help regulate the digital medium’s advertisement and hoarding boards.
The government formed the Advertisement Board in December 2020 to formulate policies relating to advertisements in the media sector.