Newspapers owners yesterday urged the government to bring global social media platforms such as Facebook and Youtube under the tax net as they eat up half of online advertisement.

The government does not have any control over global digital platforms as they do not have any office in Bangladesh, said Matiur Rahman, president of the Newspaper Owners' Association of Bangladesh (NOAB).

The global platforms are eating up 50-60 percent of the online advertisement incomes of the newspapers of Bangladesh, he said.

Many countries in Europe have been successful in realising their share of online incomes through battles with Facebook and Youtube, Rahman said. “It is also done in India.”

“It means that Facebook and Youtube should be brought under the tax net of Bangladesh. They should share a portion of their incomes with the state and with us. For this, the government should take an initiative.”

The editor of the Prothom Alo said if the global platforms are brought under the tax net, it will be beneficial for the government, the local newspaper industry and the television channels.

A panel should be formed to solve the issue, he said. His comments came at a discussion of the National Board of Revenue (NBR) with the print and electronic media owners.

The NBR organised the event to hear the views and recommendations of various professionals and trade bodies before framing the fiscal measures for 2018-19.

Chaired by NBR Chairman Md Mosharraf Hossain Bhuiyan, Prime Minister's Media Adviser Iqbal Sobhan Chowdhury and NOAB's Executive Committee Member Mahfuz Anam were present.

Representatives of the Association of Television Channel Owners (ATCO) also spoke. In November last year, the NOAB sent a letter to the finance ministry, the Bangladesh Bank and the NBR about the issue.

In the letter, the association said Facebook and Google have no office in Bangladesh which allows them to remain out of the purview of Bangladesh's laws.

Facebook and Google are earning a huge amount of money from digital advertisements, but they are not paying any taxes, the association said.

To do business in any country, it is a pre-condition for every company to comply with local laws, reads the letter signed by Rahman. At the meeting, the NBR chairman asked his colleagues to take the issue into consideration.

The NOAB said the newspaper industry faces competition worldwide from electronic and online media as well as social media platforms.

“The newspaper industry is the only old industry that is losing readers worldwide because of television and other digital platforms. As a result, its advertisement income is falling,” Rahman said.

The similar trend is also seen in Bangladesh, he added.

“We have estimated that the readers are falling by 5-10 percent here and advertisements are also declining. On the other hand, our costs are rising,” he said.

He said the price of newsprint has risen by $100-$150 per tonne in the last three months.

The newspaper industry has become a sick industry because of falling income from advertisements and circulation, Rahman said.

“It is now a question whether the newspaper industry will sustain in the next 10 years,” he said, urging the government to give incentive to the sector.

He also demanded withdrawal of the import tariff and value added tax for the sake of the industry.

The recent formation of the wage board for journalists will increase the cost for newspapers, said Rahman.

“The media should not be seen as a factory; it should be given incentive from the perspective that it provides a social service,” Iqbal Sobhan Chowdhury said.

ATCO Senior Vice President Mozammel Babu expressed dissatisfaction over the lack of reflection of views and recommendations given at pre-budget discussions in the past. “The rate of implementation of the recommendations is so low that we do not find incentive to come here,” he said.

He called for bringing cable operators under digitisation and imposition of fees for broadcasting foreign channels in Bangladesh.