‘Banks’ signboards do not fall under definition of advertisements’

LAHORE: Signboards installed by the banks do not come within the definition of advertisement and billboard, therefore the Parks & Horticulture Authority (PHA) charge fee against them.

It may be noted that the PHA had directed the banks in the city to pay advertisement fee for the signboards installed in their respective branches/regional offices.

The banks informed the authority that they are required to display their signboards outside their registered offices and every office or place in which the banking business is carried out under the Companies Act. Also, the managements of the banks referred to the BPRD Circular No. 207 of the State Bank of Pakistan requiring every bank to prominently display their names on a signboard outside the place of business. Therefore, they are not liable to pay the advertisement fee.

Furthermore, they contended that banking business falls under the ambit of federal government, and not the provincial government, in terms of taxes and fees levied on them.

According to the banks, since the signboards were not installed on any property under the control of PHA, therefore, no fee could be charged against them.

However, the PHA remained adamant to charge the fee, saying that exemption under the PHA Outdoor Advertisement Regulations 2017 is only available up to the size of 30 square feet and any signboard that breaches the limit is liable for advertisement fee. The authority further advised the banks to differentiate between the display of their names on regional offices and branches with the advertisements of their products.

The banks rebutted the PHA stance by highlighting that neither the Companies Act nor the SBP directive prescribe any limit on the size of the signboards while mandatory requiring to display their names on their buildings.

Similarly, they asserted that the demand notices issued by the authority did not contain specific particulars regarding nature of product which was advertised including the date, time and place it was installed.

The relevant appellate forum directed the PHA to withdraw notices. Fresh notices can only be issued if specific particulars are added to them, it added.

Copyright Business Recorder, 2024