KATHMANDU, August 21: The Advertisement Board of Nepal (ABN) has upped its interventions to make advertisement agencies' business more transparent after the Council of Ministers passed the first amendment to the Advertisement Regulations 2077 BS.
With the new Regulations in place, the wrong practices observed in the field of advertisement business are expected to end.
As per the provision of the Regulations, the media houses should submit the rate of advertisement to the Board every year and the Board will then release the rate on its website.
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Currently, the media houses receive just 10 per cent for the advertisement while 25 per cent is exempted to the government agencies, while 65 per cent of the total amount goes as commission to the advertisement agencies.
The size of the advertisement market in Nepal is estimated to be around Rs 5 billion a year.
Chairman of Advertisement 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 submit the bill given by the concerned media house to the advertiser.
For the service, the advertising 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 added.
The new legal provisions will also regulate the digital medium's advertising and hoarding boards.
(RSS)
