Duty back on import of newsprint

The picture shows a dyeing machine at a textile factory in Gazipur. Businessmen yesterday expressed confusion over the new import duty on capital machinery. Photo: Amran HossainStaff Correspondent

Newspaper industry is facing a blow as the government has proposed to impose five percent duty on import of newsprint for newspapers.

"I propose to impose only 5 percent customs duty on the import of newsprint to be used in newspaper industry. Moreover I propose to withdraw the VAT applicable for importation of pulp that is a virtual raw material for this industry," said finance minister AMA Muhith in his budget speech.

President of Newspaper Owners Association of Bangladesh and Editor of The Independent Mahbubul Alam said the last caretaker government made zero custom duty for importing newsprint used in newspaper giving a condition to implement the seventh wage board award.

"We have already implemented the wage board but due to the imposed duty it will make us loser either way," he said.

"Currently all text books enjoy zero tariff while other books (like fiction, novel etc) attract 12 percent customs duty. Since these books help develop creativity and imagination, I propose to reduce the duty rate on other books from existing 12 percent to 5 percent," said Muhith.