Import duty on newsprint

THE five per cent import duty on newsprint, as proposed in the budget, will deal a crippling blow to the already wobbly newspaper industry grappling with high production costs. The 5% import duty will in effect be enhanced to 11.5% with the inclusion of VAT and regulatory tax. And that will mean the newspapers will have to pay 30% as import costs to the government, as even under the existing zero tariff regime they are paying 19% of such costs. So, the additional financial burden that will be imposed on the industry is going to be huge in real terms.

The import duty on newsprint has apparently been levied to support the local newsprint industry churning out substandard newsprint involving wastage and charging an extra Tk 8,000 to 10,000 per ton. Obviously, this very idea of favouring one local industry at the cost of another, which is the newspaper industry with all its intrinsically significant role in society, does not stand to reason .

The decision makers are expected to take into account the positive role of the newspapers and the ill effects on the industry being burdened with additional taxes. The thriving and buoyant print media has played a role in brightening the country's image globally. By maintaining a free flow of information the print media has been serving both the people and the government. It is a bulwark against social injustice and all kinds of discrimination. It is also serving the cause of good governance by being a bridge between the government and the people and providing objective feed-back to the ruling party as well as to the opposition.

Moreover, when the imported newsprint becomes costlier, the whole publication industry will be adversely affected and prices of even textbooks will go up. It will hinder dissemination of knowledge -- a prerequisite for advancement of any society.

The newspaper industry is more than a business oriented venture which cannot be treated strictly from the economic point of view alone. It has a direct bearing on governance and growth of social and political institutions needed for consolidating democracy, establishing human rights and all other good things that we cherish as a nation. If production costs of newspapers go further up, the existence of the industry will be threatened, much to the detriment of society as a whole.

It is good news that the information minister has expressed his readiness to take up the matter with the government. We believe that the print media as the engine of free flow of information and the vehicle for serving the people's right to know will be accorded all the facilities that it deserves and that it should not bear the brunt of any policy adjustment or favour done to any other industry.