New provisions aimsto make advertisement industry transparent

KATHMANDU, AUGUST 21: The Advertisement Board of Nepal has taken steps to enhance transparency in the business practices of advertisement agencies following the approval of the first amendment to the Advertisement Regulations 2077 BS by the Council of Ministers.

With the implementation of these new Regulations, the problematic practices that have been observed within the advertisement industry are expected to come to an end.

Under the amended Regulations' provisions, media houses must annually submit their advertisement rates to the Board. Subsequently, the Board will publish these rates on its official website.

Currently, media houses receive only 10% of the advertisement amount, while government agencies are exempted from paying 25%, and advertisement agencies take a commission of 65% of the total sum. The total advertisement market in Nepal is estimated to be approximately Rs 5 billion.

Laxman Humagain, Chairman of the Board, stated that this new provision would introduce transparency to the advertisement market. Payments for advertisements will only be made after the advertisement agencies provide the advertiser's bill issued by the related media house. Additionally, the service charge for advertisement agencies will be capped at 15%.

Humagain further explained that these clear regulations will not only curb malpractice within the advertisement sector but also boost tax revenues. The amended Regulations will also bring digital advertising and hoarding boards under regulatory oversight