Public-Private Working Group for Strengthening Media asks for VAT exemption for newspaper advertising

The Public-Private Working Group for Strengthening Media (PPWGSM) asks for VAT exemption for newspaper advertising, except for the ones publishing ads and erotic pictures. It also asks to raise to 50% the quota of advertising in publications exempted from Value Added Tax. The proposals as a legislative initiative were discussed on Friday at a sitting of the PPWGSM. Both drafts have been presented by the Independent Press Association (IPA), Info-Prim Neo reports. The national law envisages that the periodicals having an annual turnover of up to 300,000 and not exceeding the advertising quota of 30% from the total space should pay the VAT . “By these modifications, one can contribute to economically strengthening the periodicals in Moldova,” said the IPA lawyer, Eugen Rabca, specifying, thus one will obtain a realignment to the European standards. In Britain, Holland, Belgium, the VAT is not paid for for selling advertising area in newspapers. In Estonia, Lithuania, Latvia, the tax as small as 4%. There were also different opinions as to the proposed draft. If the advertising area increases, the publications may lose in quality, said Alexandru Dorogan, the president of the APEL Broadcasters Association. The participants also considered the idea of obliging the newspapers to unveil the volume of advertising they are going to publish, during subscription campaigns. The drafts were submitted to the Finance Ministry and Parliament. The Public-Private Working Group for Strengthening Media joins 21 representatives of public authorities, regulating authorities, NGOs and media. They gather in conformity with Threshold Country Program of the US Millennium Challenge Corporation. The next sitting of the Public-Private Working Group for Strengthening Media is scheduled for September 19.
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