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 2077 BS.
With the new Regulations in place, the wrong practices observed in the field of advertisement business are likely 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 in its website.
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 advertisement market of the country is estimated to be around Rs 5 billion.
Chairman of Board Laxman Humagain 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 15 per cent service change.
"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.
It will also regulate the digital medium's advertisement and hoarding boards.
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