NOWAB demands reduction of fees, taxes for newspapers

In the era of globalization and digital media, newspapers have become a fragile industry. Customs duties, VAT, corporate tax have become barriers to the development of this industry. Newspaper Owners Association of Bangladesh (NOWAB) President AK Azad said that there is a need for huge reforms in the application of customs and taxation policies in the newspaper industry.

He said this during the pre-budget discussion for the fiscal year 2024-25 at the conference room of the National Board of Revenue (NBR) at Agargaon on Sunday.

Azad said, "In the current global economic situation, especially with the continuous increase in the exchange rate of the dollar, this industry has been negatively affected. A few years ago, the price of one ton of newsprint was below $600; now it's above $700. The significant reason for this is the unfavorable exchange rate between the Taka and the dollar. Although the income tax on newspaper revenue is 5%, when combined with 15% VAT and additional expenses such as advance income tax, transportation, and insurance, the landed cost is almost 30%."

At present, Newsprint is subject to a 2% duty, a 15% VAT instead of 5%, and Corporate Tax is being proposed to be determined or disclosed as a service industry instead of manufacturing, said Azad.
He added that, "In the past few years, the government has not implemented any proposals for the development of the newspaper industry. Let our proposals for this year's budget be considered."

Editor of The Daily Star Mahfuz Anam said, "Paying taxes is a universal matter, a global practice. If you observe in other countries, how newspapers are marked, and how revenue is collected is different. In my knowledge, India, Pakistan, and Sri Lanka tax newspapers less compared to us."

Assuring consideration of NOAB's proposal, Abu Hena Md. Rahmatul Munim, the Chairman of NBR, said, "Even if facilities are provided, another party gets ready to misuse them. If the cost of paper or import duty is reduced for newsprint, all paper will go to newsprint, and it has happened in the past. It is not possible to determine how much paper is coming for newsprint. To determine this, we want to work based on evidence."

Rahmatul Munim praised the role of mass media in increasing revenue, stating, "Taxes and tax rates are increasing GDP, and the media is playing a conscious role in promoting it. The media will have a more significant role in the future as well."