Newspaper Owners' Association of Bangladesh (NOAB) has issued the following statement: The proposed budget has provided for imposition of five per cent tax on import of newsprint. But in effect, the actual tax will stand at over eleven and a half per cent.

The existing zero tariff on import of newsprint by newspapers will be discontinued. It may be mentioned here that on account of import of newsprint 19 per cent of the imported value of newsprinted had to be deposited in government treasury as VAT and other charges. The addition of another eleven and a half per cent under the proposed tax will increase the total payable tax to over thirty per cent of the imported cost of newsprint.

Newspaper Owners' Association of Bangladesh (NOAB) has expressed deep frustration over the step taken to impose the unusual burden of taxes on newspaper industry.

The Finance Minster has defended his action by saying that it is aimed at protecting the local paper industry. But he has totally overlooked the damage it will inflict on the newspaper industry of the country. It is undoubtedly discriminatory to apply two different yardsticks to the two industries.

The paper mills of the country are already enjoying zero tariff in importing its raw materials. Now, as an additional concession, VAT on import of pulp has also been withdrawn. This privilege will be enjoyed by only a few paper mills.

The large newspaper industry, already struggling against adverse situation, will now be more vulnerable. With this the fate of journalists and newspaper employees has become uncertain.

NOAB has pointed out time and again that the local paper mills produce substandard newsprint and that its price is Tk. 8 to Tk. 10 thousand more per tonne of imported newsprint. The government cannot reward a few paper mills for their substandard newsprint and runaway profit while depriving the newspaper industry of similar concession.

Although the budget has proposed tax of five per cent, another five per cent regulatory tax (RD) has been cleverly added to it. Therefore, the total tax increase is ten per cent. It may be mentioned that even in zero tax situation, as much as nineteen per cent VAT used to be charged per tonne of imported newsprint.

We would like to recall here that zero tariff on import of newsprint was promised to newspapers as one of the conditions for implementation of the seventh Wage Board Award.

Both the government and the newspapers are party to it. According to this arrangement, majority of newspaper have increased pay and allowances by 100 per cent. But as a result of imposition of tax that promise has been broken. As a result of this, how can the newspapers continue to extend these facilities ?

We hope the Finance Minister will reconsider the tax proposal on import of newsprint and withdraw it. We welcome Information Minister's assurance that the problem can be resolved through discussion. Finally, we fervently appeal to the Prime Minister to intervene to save the newspaper industry and rescue it from financial crisis.
The statement was signed by Mahabubul Alam, President, NOAB.

-Daily Independent