Bangladesh News

The budget proposal for levying 5 percent import duty on newsprint would put the newspaper industry in dire straits, says a Newspaper Owners’ Association of Bangladesh (Noab) press release.

In a statement yesterday, its leaders expressed deep frustration over the proposal. They appealed to Prime Minister Sheikh Hasina to intervene and rescue the newspaper industry from the financial crisis.

The finance minister’s proposed 5 percent duty will increase to 11.30 percent after including VAT and regulatory tax, the statement says.

Even under zero tax system the newspapers would have to pay 19 percent of the import cost to the state exchequer. Now with an addition of around 11.5 percent in duties, the cost will go up by over 30 percent, it explains.

Referring to the finance minister’s argument that the raised duties on imported newsprint would help save the local mills, the Noab leaders said he does not seem to have thought about the implications for the newspaper industry.

Assessing two industries by different yardsticks is discriminatory, the statement continues. “The import taxes will throw the fate of the journalists and newspaper workers into uncertainty.”

Noab said the locally-produced newsprint is below quality but it costs Tk 8,000 to Tk 10,000 more per tonne than the high-quality imported newsprint.

“The government can’t allow some local mills producing below standard newsprint to make limitless profit depriving the newspaper industry,” the statement reads.

Besides a 5 percent import duty on newsprint, another 5 percent regulatory tax (RD) has been imposed in the proposed budget tactfully.

Zero-tax facility for newspapers was a condition for implementing the recommendations of the seventh wage board to which both the government and newspapers are committed.

Most newspapers raised wages and benefits for workers by 100 percent as per the condition.

“But imposition of the new duty is a breach of commitment on the government’s part,” reads the statement issued by Noab President Mahbubul Alam.

Noab leaders hoped that the government would reconsider the proposal.