Tag: Vivek Gambhir

Here’s what a cross-section of industrypersons said on the Union Budget from the M&E standpoint

Rakesh Jariwala, Partner & Head – M&E Tax Advisory – India, EY (Ernst & Young)

“As part of the budget proposals, India has levied an equalisation levy – what is known as ‘google tax’ globally. The tax @ 6% of the consideration will apply on services relating to online advertisement, provisions on online ad space or other facility or services for the purpose of online advertisement, when such services are provided by a non-resident to either an Indian resident or a non-resident having a permanent establishment in India. The payer for these services are required to deduct 6% prior to making the payment. This is the first time that online services are being taxed in India.”

Sudhanshu Vats, Group CEO, Viacom18, and Chairman, National Media and Entertainment Committee, CII:

“Kudos to the government for presenting a disciplined and inclusive budget. The emphasis on rural development and commitment to the fiscal deficit target augur well for the economy in the long-run. The proposal for a more conducive excise duty regime for STBs and other ‘entertainment-access devices’ is welcome. While many of us from the industry were anticipating more sector-specific announcements, I’m sure that this budget will benefit the larger economy and therefore, by extension, have a positive impact on our industry as well.”

Ashish Bhasin’s (Chairman & CEO South Asia – Dentsu Aegis Network and Chairman Posterscope & MKTG – Asia Pacific):

“Overall there are some positives and some negatives in the Budget. On the positive side, not increasing the service tax is a positive, particularly for the advertising and media sector. General expectation was that Service Tax may go up in anticipation of higher GST rates. Controlling the fiscal deficit and several steps to invigorate the rural economy and rural consumption are positive signals. A rural consumption revival will help the economy and the advertising and media sector tremendously. On the negative side, there was an expectation, based on what the Finance Minister said in the past, that corporate tax rates would come down. That is not to be so for most large companies. Introducing double taxation on dividends  is also a negative.  In balance this seems to me to be a mixed bag budget with a positive bias. If it is able to spur overall economic growth, we could see good times ahead for the advertising and media sector.”

M K Anand, MD & CEO Times Network

“Digitisation, in my opinion is the most important factor for the Broadcast sector currently, we are very happy about the excise duty changes proposed for Set Top boxes which will help in the last mile infrastructure of DAS 3 and 4. Overall a stable and positive fiscal situation is good for the economy and that will support our Ad Sales growth projections. All in all Budget 2016 looks good for the Broadcast sector.

Vivek Gambhir, Managing Director, GCPL:

“Overall, this is a responsible “Rural First” Budget that attempts to revive demand, while continuing on the path of fiscal consolidation. For the FMCG sector, initiatives to support the revival of rural and urban consumption should help bring growth back on track. Focused efforts on alleviating rural distress and uplifting the agrarian economy, will help put more money in the hands of farmers. Statutory backing of the Aadhar scheme will ensure more targeted delivery of benefits to those who need it. The need of the hour is job creation and focusing on skilling and education to make people more employable. The implementation of transformative reforms, like the GST, at the earliest, are however imperative to fast track economic growth and boost consumer confidence. Given the Government’s intent to stick to its path of fiscal consolidation, we look forward to an interest rate cut or more liquidity in the system to drive private capital investment. Going forward, given the plethora of schemes that have been announced, it will be important to deliver on the promises made through effective on-the-ground execution.

Sanjay Sethi, CEO, Shopclues.com

“Finance Minister Mr Arun Jaitley has certainly made several important announcements for start-ups in his Union Budget speech. We are pleased that a sizeable sum has been allocated for ventures founded by women entrepreneurs and members of scheduled castes and scheduled tribes. This is a great step towards empowerment and inclusive growth for those communities that have hitherto found less representation in business. The fact that start-ups will get 100% tax exemption for three years  out of 5 years  and long terms capital gain for unlisted companies has been reduced from 3 years to 2 years will also be a great boost to the economy and will aid in creation of jobs. However, we do believe that overall a lot more impetus could have been given to the start-up ecosystem through this budget.”

Sanjeev Gupta, MD, Global Advertisers:.

“We are glad that there is no increase in taxes. Since the government is said to be pro-development and has allotted significant money for the rural infrastructure, railways and road development, we think it’s a positive sign for our future. We are also seeing great potential in expanding our reach to small cities now. The finance minister has also hinted at amending motor vehicles act for better transportation facility in the country. This may give us the opportunity to position our ads more effectively while on the move. We feel that in this critical economic condition, the budget has been so far satisfactory for the advertising industry.