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A tax slapped on all advertising budgets last year has not really tightened purse strings, but companies are thinking twice about the way they spend to grab attention. Last November, the government brought half of a company's annual advertising and promotional spend under the corporate tax net, formerly classified as a deductible expense.
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Now, only 50 percent of a company's advertising and marketing budget is allowed, the balance added back to income and taxed at 32.
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5 percent.
The move sparked uproar in advertising and private sector circles, expecting ad budgets to be slashed with the hike in costs and complaints of a plethora of taxes.
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