Print media merits continuing support
THE Bangladesh Paper Mills Association has raised a demand that we find on close examination to be not only unmerited but also one seemingly designed to subvert the growth of newspaper industry. The association has ostensibly sought protection of the local industry by demanding that newspapers buy 50 percent of their total requirement locally and the remainder 50per cent through import carrying a100per cent duty.
On top of the sheltered market, regardless of the quality of newsprint and the price at which they sell, they are asking for the import cost to be prohibitive. In other words, they want to eat the cake and take it home also.
Back in 2001 a quota for local purchase was fixed along with a high duty on imported newsprint. This preferential arrangement for local paper mills continued until 2007-08. In spite of such assured market and concessional treatment for seven years the quality of local newsprint didn't improve but its price increased all the same. Monopoly market far from helping industrial growth hinders it and the lack of competition also leads to higher price.
The national budget 2007-08 adopted a policy of zero tariff on imported newsprint carrying 30per cent duty up until then, yielding dividends. It would raise the number and quality of newspapers while the readers could buy these with more pages at a reasonable price.
The fact of the matter is that the price of poor quality local newsprint is Tk 50,000 per tonne in contrast to Tk 42,500 for improved quality foreign newsprint. Besides, the local newsprint is such a poor stuff that its use entails a lot of waste. As for the imported newsprint, even with a zero duty, the newspaper industry has to pay 19per cent levy to the government exchequer as VAT and other dues.
The cost of running newspapers has increased manifold including the mandatory requirement of implementing the seventh wage board. Since newsprint constitutes 80per cent of the production cost it needs hardly any elaboration that if the price of newsprint is nearly doubled, as would be the case if the demand is acceded to, the publisher, journalist, news organisation and reader will all stand to lose.
Newspaper is not merely an industry; it is indeed being increasingly looked upon as a vehicle for free flow of information, a medium for advocacy, spread of education, social consciousness and catalysis, cultural and emotional expressions, articulation of public grievances, and above all, as a feedback mechanism for the government on its policies and actions.
We are all for promotion of local industry, but this must be based on improved quality of product and competitiveness in pricing. If any segment tries to pressurise the government into obtaining any undue advantage tantamount to striking at the root of newspaper industry it will not only be counter-productive but harmful for the nation as well. While fully echoing the NOAB's concern that if the demand in question is accepted it will not only impede free flow of information but also jeopardise the fate of all those associated with the industry, we urge the government not yield to the pressure of any vested quarter.
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