The All Pakistan Newspapers Society and Pakistan Broadcasters Association have urged Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb on Saturday to withdraw the proposed amendment regarding the disallowance of sales promotion and advertising costs in the Finance Bill 2024-25. In separate letters sent to the Prime Minister and Finance Minister Aurangzeb, both entities emphasised that members of PBA and APNS are already facing severe hardships due to the contraction of the documented economy, lack of innovation, and overall lacklustre economic growth.
They added that due to an amendment in the recent finance bill, sales promotion and advertising expenses, up to 25% of a company’s total, will not be available for adjustment in the income tax return. “In other words, the tax liability of the large multinational companies will increase significantly, moreover, the additional tax liability will attract super tax,” read the letters. Both entities added: “The effective tax they pay is already the highest in the region and this bar on claiming sales and promotion and advertisement will add fuel to the fire and make us further less attractive, from a foreign direct investment perspective.”
They said the APNS and PBA were aware of the challenges being faced by the government and therefore supported it in its efforts to document the economy and highlight the positive steps being taken by all stakeholders. “We are also cognisant that the economic slowdown is unavoidable and requires patience and resilience from every section of society, which includes our members, their staff and workers and we continue to highlight positivity,” the letters mentioned.
