Argentinian ad agencies will have to pass on to their clients the 10.5% value added tax that the government proposes to slap on the ad industry, agency bosses are predicting. And they think advertisers are likely to cut their media budgets as a result. The new tax is among wide-sweeping measures unveiled by the government this week to combat Argentina's chronic budget deficit. Other industries affected include non-educational print media, which sees a new 5% VAT, and cable television, hit with a 10.5% VAT. The Argentine Congress is expected to pass the measures, though opposition parties have already voiced their discontent. Advertising production costs and media buying commissions are already saddled with the country's 21% blanket VAT.