Advertising: Costs Increase in Nicaragua

Following the entry into force of the Sign Law, agencies engaged in providing printed advertising services estimate that the cost of billboards will increase by 30% due to the new tax payments to be made to the municipalities.

Wednesday, February 3, 2021

According to the Assembly, the purpose of the Law is to establish the legal framework to regulate the advertising and propaganda carried out by means of signs located in the municipalities of the country, based on urban, suburban and rural planning and development, as well as technological advances.

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The new legal framework through which up to 40 types of dollarized rates were created and which came into effect last December 18, will put upward pressure on the operating costs of agencies offering print advertising services.

According to the type of advertising to be placed, the charges to be made by the municipal authorities range from $4 to $1,000. With this new charge, businessmen estimate that the prices of services may increase up to 30%.

Representatives of the agency Miranda y Publicidad, told that "... in the middle of the coronavirus pandemic the prices of the signs had fallen significantly, for example a road billboard could be marketed at $750, but with the new rates will have to be increased. Now with the new taxes we will have to return to at least the pre-crisis rates, that is, when the same sign was charged between $900 and $1,000."

According to Denis Merlo, manager of Publimerlo, the agency only offers billboards on highways and what they are doing is "... to maintain the prices to our clients because if we do not maintain the prices, due to the taxes, what the client is going to do is to run and then we better assume it."

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