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FICCI: Exclude expense on sales promotions and brand ambassadorship from FBT
New Delhi: FICCI has asked finance minister P Chidambaram to exclude expenditure on sales promotions and payment made to brand ambassadors from the ambit of the Fringe Benefit Tax.

In a letter addressed to the finance minister, FICCI President Onkar S Kanwar said dropping these items from FBT list would hardly result in any significant revenue loss to the government.

"The payment to a brand ambassador would unjustifiably fall within the purview of FBT net, because there would not be any employee-employer relationship between the company and the brand ambassador," he said.

With key marketing functions like expenses on brand ambassadors, celebrity endorsement and distribution of samples being brought under the FBT net, the bottom-lines of companies such as fast moving consumer goods (FMCG) and pharma would be adversely affected, he said.
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