‘Reduce GST to 5%’: IOAA appeals for GST rationalization to boost OOH sector, civic infrastructure
Industry body says high tax burden hurts MSMEs, discourages PPP-linked civic projects; seeks exemptions to boost urban development and private investment
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The Indian Outdoor Advertising Association (IOAA), representing leading Out of Home (OOH) Media Owners and working closely with local urban bodies across India, has appealed to Finance Minister Nirmala Sitharaman, seeking a reduction in the Goods and Services Tax (GST) rate on outdoor advertising.
Currently, outdoor advertising is levied with a GST rate of 18%, which IOAA considers disproportionately high for the sector. This adversely impacts MSMEs, local businesses, and PPP initiatives that contribute to civic infrastructure.
In their letter, IOAA has urged the government to consider the reduction in GST rate to 5%, emphasizing the need to support small-budget campaigns and encourage urban development.
"Outdoor advertising is a vital channel for marketing, yet it remains under-prioritized, especially for small businesses," said a spokesperson for IOAA.
"Reducing GST will make outdoor advertising more accessible and allow PPP projects to continue providing crucial amenities like public toilets, street furniture, bus shelters, and signage- all of which benefit urban communities directly."
IOAA highlighted the public benefit generated from outdoor advertising revenues that help develop and maintain vital civic infrastructure. However, the current high tax rate discourages private investment and threatens the sustainability of these public-benefit projects.
The association has also called for exemption of GST on PPP-linked outdoor advertising projects, thus boosting private sector participation in urban development.
Key Requests in the IOAA Submission:
- Reduce GST on outdoor advertising from 18% to 5% to spur investment and support MSMEs.
- Exempt GST from PPP-linked advertising projects which finance civic infrastructure.
- Encourage recognition of the public service contribution of outdoor media owners via tax concessions.
The IOAA remains hopeful that the government will consider these recommendations, paving the way for sustainable urban development, increased private investment, and a thriving MSME sector.
