The dismantling of billboards put up on the streets of Chisinau could cause damage of about 26 million lei to the municipal budget, said advertising operators that are members of the Association of Advertising Agencies of Moldova. These are dissatisfied with the mayor of Chisinau’s recent decision to take away the billboards from a number of streets. Vice director of an advertising company Iurie Caluja, in a news conference at IPN, said that before dismantling the billboards, the local public authorities must assess the possible consequences of such an act.
Iurie Caluja said the revenues in the area of outdoor advertising amount to about 100 million lei a year. “According to our estimates, the outdoor adverting sales exceed 100 million lei. Of this sum, over 26 million lei is paid into the municipal budget as advertising taxes. Elementary calculations show that 16-17 million lei is paid directly as VAT,” he stated.
According to the data provided by members of the Association, another 7 million lei is paid as income tax. Furthermore, the firms that produce banners or deal with printing have annual revenues of about 12 million lei. So, they pay about 5 million lei VAT and income tax into the state budget. “I think the consequences should be considered from the start. I doubt that Mister Chirtoaca will be able to fill the gap of 55-60 million lei that will appear in the municipal budget and in the state budget in a rather short period of time,” stated Iurie Caluja.
The Association’s deputy head Victoria Barba said the advertising market is the only market that hasn’t been politicized. “It is not politicized because there is no monopoly. In case of elections, the given source could influence the voters directly if it is politicized and controlled by persons who pursue political goals,” she stated.
According to Victoria Barba, the decision by Mayor Dorin Chirtoaca to disassemble the billboards will take effect on June 1, but requests to take these away are already made.
The data of the Association of Advertising Agencies show that there are 157 printing and outdoor advertising companies in Moldova. The investments of the outdoor advertising companies total about €12 million, which is approximately 240 million lei.
