February 11, 2013

Licence for exhibit advertisements

Advertisement tax has relatively good potential in a consumerist state like Kerala where marketing of consumer goods is quite widespread even in rural areas. But less than 15% of the Grama Panchayats are collecting advertisement tax. The tax can be collected based on bye-laws framed by the Grama Panchayat and Urban Local Governments and the minimum rates for different types are prescribed by the State Government. The local governments can fix any upper limit for advertisement tax. There should also be penal provision for 'escaped tax' to enforce the tax strictly.

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