A proposal favouring 10 per cent hike in advertisement rates for the media industry is under consideration of the government, minister of state for information and broadcasting Anand Sharma said on Tuesday.

"We have recommended a 10 per cent hike in the government advertisement rates," Sharma told reporters on the sidelines of Ficci meet in Mumbai.

The advertisement rates had gone up substantially in recent months with a 24 per cent increase effected in October last year, the minister said.

Along with the increase in rates, the government had also abolished the 15 per cent mandatory deduction, he said, adding that, 'there is a close to 50 per cent increase in the advertisement rates for the industry'.

The government has also withdrawn customs duty on import of newsprint as well as glazed print magazines, Sharma said.

"We have abolished import duty for the newsprint as well as light weighted coated papers for magazines," he said.

Sharma said FM Phase-III policy was in the final stages and would be rolled out shortly.

"The government is also seriously considering the recommendations of including entertainment tax in the service tax ambit," said Sharma, who is also the minister of state for external affairs.