Tax clash boots TV commercials

World Brief

Many ads were yanked from TV screens Sunday evening due to a row between broadcasters and blurbmeisters. At the heart of the conflict is a new law requiring advertisers to pay an extra 5% tax.

The Indian Broadcasting Foundation, representing broadcasters in India, banned the commercials of companies that have refused to pay, including Pepsi, Coca-Cola, Raymonds and Hindustan Lever.

That decision, however, will hit broadcasters as well as advertisers since these companies form the backbone of the channels’ ad revenue.

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