What should be considered as an advertisement?

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Amendments on advertising, which were developed by "Atameken" together with MNE will help to solve many problems

Advertising - the motor trade and, of course, it is an integral part of the developed market economy. However, the legislation regulating advertising is far perfect in the Republic of Kazakhstan, and the public authorities, which should be responsible for its improvement, was just recently appointed.

As it was noted by the director of the Department of public monitoring and the work with the administrative barriers NCE RK "Atameken" Erbol Ustemirov, the validity of a permit for the installation of an expensive advertising structure is only 1 year that simply excludes the possibility to justify the cost of the operational period.

All these facts significantly complicate the life of entrepreneurs and make this type of activity not very profitable and very remote from international standards.

In this regard, in order to create a favorable legal framework for the advertising industry, in the process of comprehensive collaboration the Ministry of National Economy and the National Chamber of Entrepreneurs "Atameken" developed a draft Law of Kazakhstan "On amendments and additions to some legislative acts on the issues of advertising".

"This draft law will increase the validity of permits for placement of outdoor (visual) advertising up to 5 years instead of one year, and placement of a company logo or a name on the vehicle, if the company owns it, won’t be considered as advertising", - said the representative of NCE.

In addition, in order to maintain the policy of de-dollarization, there were introduced amendments to the law "On Advertising", which establishes that advertising, which quotes the price of an advertised product on the territory of the Republic of Kazakhstan should be indicated only in the national currency - tenge.

In general, the draft law will help to optimize business processes in the field of advertising, which will simplify the procedures for advertising, tax calculation and receipt of a permit.

Erbol Ustemirov notes that another problem is the issue of referral of these or other objects to the advertising.

For example, currently petrol stations in accordance with the current legislation are obliged to pay for placement of advertising tabloids with indication of the corresponding oil on the adjacent territory.

Since the Law of RK "On Advertising" doesn’t fefine the term "tabloid" or a "bulletin board", this situation leads to a different interpretation of the legislation in terms of classification of a design to an advertising tabloid or a bulletin board.

Thus, the tax authorities referred these objects to advertising structures, whereby placards are taxable.

At the same time, it should be noted that the requirement for the establishment of an information board (tabloid) is regulated by the rules of the paragraph 280 “Requirements of industrial safety in the operation of tank farms and gasoline stations”, approved by order of MES of RK on 25^th of July 2008 number 132. In this case, according to the Technical Regulations "Safety requirements for tank farms and gasoline stations", approved by the decree of the Government of the Republic of Kazakhstan dated by May 29, 2008 # 514, oil depots and gas stations operation should be carried out with the implementation of industrial and environmental safety requirements.

Thus, public authorities, on the one hand, require businesses to install placards (tabloids), on the other hand they impose taxes on these sites, thereby replenishing the state budget at the expense of businesses.

Entrepreneurs had problems with signs on doors and windows with information about operation hours, which was considered by public authorities as an object of outdoor advertising. An exception was made for entrepreneurs, who are engaged in trade, public catering and consumer services. At the same time any other entrepreneur was forced to pay a fee for the sign and information about the operation hours.

In order to eliminate any discrepancies in the existing legislation, NCE RK "Atameken" suggested to exclude from advertising list the tabloids with prices for petroleum products, signs on windows and doors of all business facilities.

The above mentioned initiative of NCE RK "Atameken" will be implemented in the framework of the law of the Republic of Kazakhstan "On amendments and additions to some legislative acts of Kazakhstan on the issue of reduction of permit documents and simplification of licensing procedures", which is currently considered by the Senate of the Kazakh Parliament.