Suparanan Tanviruch, chief executive officer of Master Ad, one of the country’s biggest outdoor-media companies, told The Nation that if the rate increase came into effect, it could have a severe impact on this industry, particularly during an economic slowdown.

She noted that the out-of-home ad-media business had to pay the 7-per-cent value-added tax, 20-per-cent corporate tax and the signage tax.

“This seems to be too much for our business while other media businesses like TV broadcasters, radio stations and online media firms only have to pay VAT and corporate tax.”

Suparanan commented on this issue after a group of local administrative organisations suggested to the Ministry of Interior that signage-tax rates be raised by 300-500 per cent.

Digital screens

If approved, the new rates are expected to be applied to transit ads, digital screens, billboards and other outdoor advertising media. For example, the signage tax on billboards in the Thai language would be Bt10 per 500 square centimetres, up from Bt3 now.

The rates for billboards with Thai and foreign languages would rise to Bt100 per 500 square centimetres from Bt20.

Meanwhile, digital screens would be listed as a new category of out-of-home media.

The owners of digital screens would be charged Bt200 per 500 square centimetres.

Suparanan said such increases appeared to go against the government policy of encouraging companies to strengthen their businesses for overseas expansion by reducing the corporate tax to 20 per cent from the previous rate of 35 per cent.

The Advertising and Sign Producing Association held a meeting with its members and this issue was among the top concerns.

The ASPA will soon convene with relevant businesses such as media agencies, brands and advertisers to discuss the matter further and might appeal to the government in writing for a review of this idea.