Waive import duty on newsprint, cut corporate tax

Newspaper owners yesterday urged the government to waive import duty on newsprint and cut corporate tax on the industry for the next fiscal year.

The Newspaper Owners' Association of Bangladesh (Noab) made the call during a virtual meeting with the National Board of Revenue.

The NBR organised the meeting to know the views and recommendations of businesses, professional bodies and other stakeholders concerned ahead of the formulation of tax proposals for fiscal year 2021-22 beginning July 1.

Speaking at the meeting, Noab President AK Azad said newspapers have to pay 30pc final tax and 32.5 percent tax on their profit.

"It is very hard to pay the tax [at this rate] in the aftermath the coronavirus pandemic," he said.

Circulation of newspapers crashed during the pandemic and the import cost of newspaper also went up, he said, adding that the industry did not get any incentives from the government.

"We have to use imported newsprint because the quality of the local newsprint is below standard."

Azad recommended reliving the industry of 5 percent newsprint import duty considering the impact of the pandemic.

The Noab president, also the publisher of Bangla daily Samakal, suggested slashing corporate tax on newspapers as it is a public service industry.

Mahfuz Anam, editor and publisher of The Daily Star, said as the government declared newspaper as an industry, newspapers should get benefits similar to those enjoyed by other industries.

The newspaper industry has been seriously impacted by the pandemic and it is in desperate need for whatever the government can do for it, said Mahfuz Anam, also a former president of Noab.

NBR Chairman Abu Hena Md Rahmatul Muneem said the revenue authority will consider reducing import duty on newsprint if it finds that local paper manufacturers cannot produce quality newsprint.

Mozammel Haque Babu, chairman of the Association of Television Channel Owners (ATCO), said many multinational companies are giving advertisements to foreign TV channels which are broadcast in the country as people are watching those.

The government is losing VAT from those advertisements, he said.

On the other hand, many cable operators are not paying VAT despite doing good business. The NBR is being deprived of VAT of about Tk 1,720 crore from the cable operators, Mozammel said.

In response, the NBR chairman said they will take steps to ensure VAT is realised from cable operators properly.

Noab Executive Member Dewan Hanif Mahmud said government offices do not issue VAT receipts when newspapers collect bills from them against government advertisements.

He requested the NBR take steps to make sure that the government offices issue VAT receipts.

Mahmud, editor of Bangla daily Bonik Barta, requested the authorities to waiver newspaper of paying advance income tax for the upcoming fiscal year considering the pandemic.

"This might be a lifeline for us."