Newsprint Import: Noab seeks VAT relief

The Newspaper Owners’ Association of Bangladesh (Noab) yesterday urged the government to exempt Value Added Tax on newsprint imports and reduce corporate tax to enable the newspaper industry to survive.

The Noab said the government declared the newspaper industry as a service oriented industry, but it does not get any special benefit.

Newspapers have to pay 35 percent corporate tax although they do not earn enough and their goal and objective are different from other businesses.

“The newspaper industry is passing through a very tough time. It has become a sick industry,” Noab President Matiur Rahman said at the consultative committee meeting on the national budget for 2019-20 at the Bangabandhu International Conference Centre.

The National Board of Revenue (NBR) and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) jointly organised the meet.

Matiur, also the editor and publisher of Bangla daily Prothom Alo, said the present 35 percent corporate tax is unacceptable. Reducing the tax to 10-12 percent would be logical and helpful for the newspaper industry, he added.

He said although VAT on newspaper has been exempted under the VAT law of 1991, 15 percent VAT is collected on import of newsprint which increases costs. He demanded exemption of VAT on newsprint import.

According to Noab, total landed cost of imported newsprint stands at 31 percent because of 5 percent customs duty, 15 percent VAT, 5 percent Advance Income Tax (AIT) and other costs. As a result, the cost of printing is rising.

Matiur also demanded that the government cut tax at source to 2 percent from 4 percent and waive the AIT on newsprint import.

The Noab president said the rates for government advertisements were very low and huge bills remain unpaid for many days.

He said the government should increase the advertising rates.