The World: Madrid - Spanish govt approves eliminating ads from state TV

The Spanish government has approved a draft plan to eliminate ads from state TV in a bid to boost private companies' advertising revenue.

The plan would end advertising on state TV channels such as La Primera and La Dos.

It is hoped that the plan will raise ad revenues at private TV companies by eliminating competition for business from state TV channels.

Private TV companies will pay a 3 per cent tax on revenues, and telecom companies will pay a 0.9 per cent tax, in order to compensate state TV for the loss in ad revenue.