Lucknow Nagar Nigam reimposes Advertisement Tax

The confusion that set in the Lucknow OOH industry over Advertisement Tax and GST seems to have been resolved now with a new approval on imposing Advertisement Tax on OOH media. In 2017, the Lucknow Nagar Nigam had begun cracking down on hoardings and other outdoor display formats based on the premise that Advertisement Tax had been scrapped with the implementation of GST. Therefore with the perceived loss of revenues, the local corporation showed very little interest in the OOH structures.

However, the tax norms have now been clarified and the Lucknow Nagar Nigam has once again started applying the Advertisement Tax, thus adding to their revenues.

The Advertisement Tax amount will vary according to the formats and tenders. However the authority body has said that the tax will be applicable on all tendered formats and private sites.

The local corporation body will also charge Advertisement Tax on Lucknow metro media, thus adding another revenue source to their kitty.

The re-imposing of Advertisement Tax has been welcomed by the regional OOH industry as it will give a boost to the industry with new tenders and permissions for new media formats.