NOAB seeks exemption from employees’ income tax

The Newspapers Owners’ Association of Bangladesh (NOAB) on Tuesday proposed a series of tax relief measures, including exemption of newspaper establishments from paying employees’ income tax, withdrawal of duties on newsprint, reduction of corporate tax to 10%, and complete removal of the existing 15% VAT on newsprint imports.

These proposals were presented during the pre-budget discussion for the fiscal year 2026–27, held Tuesday morning at the conference room of the National Board of Revenue (NBR).

On the same day, the Economic Reporters Forum (ERF) submitted a separate set of 37 budget proposals.

The discussion was chaired by NBR Chairman Md Abdur Rahman Khan. NOAB President and Editor-in-Chief of Manab Zamin, Matiur Rahman Chowdhury, presented the proposals. Also present were Matiur Rahman, editor and publisher of Prothom Alo, and ERF President Doulot Akter Mala.

Matiur Rahman Chowdhury stated that while many export-oriented and priority sectors currently enjoy corporate tax benefits ranging from 10% to 12%, the newspaper industry has been excluded from such of facilities.

Considering the crucial role of newspapers in society and the ongoing financial challenges faced by the industry, he emphasised that granting similar tax benefits is both justified and necessary. He strongly urged the government to reduce the corporate tax rate for the newspaper industry to 10% in the upcoming budget.

Regarding employee income tax, he argued that under Section 86 of the Income Tax Act 2023, employees in all sectors – including government institutions – are responsible for paying their own income tax.

However, under the newspaper wage board structure, employers are required to pay income tax on behalf of employees, which creates inconsistency. He stressed that laws should be applied equally across all sectors.

In response, NBR Chairman Abdur Rahman Khan said that although such provisions exist under the wage board, the standard practice should be that employees pay their own taxes, deducted from their salaries. He added that this issue would be addressed clearly in any future wage board revisions.

NOAB further highlighted that due to rising global prices and heavy import dependence, the newspaper industry is under severe pressure. Currently, newsprint imports are subject to a 3% customs duty, 15% VAT, 5% advance income tax (AIT), and 7.5% other taxes, pushing the landed cost up to around 130% to 132%. Therefore, they demanded complete withdrawal of import duties on newsprint.

Additionally, NOAB requested exemption from withholding tax and advance income tax. Under Sections 92 and 120 of the Income Tax Act 2023, newspaper advertisement income is subject to 5% withholding tax, and raw material imports face 5% AIT – making a total of 10% tax burden.

They argued that since profit margins in the industry are often below 10%, and advance taxes are not adjusted at year-end, this creates further financial strain.

Responding to the demand for reducing corporate tax, the NBR chairman said that while he had previously made commitments and fulfilled them, reducing tax rates further would be difficult due to the government’s need to increase revenue. However, he assured that corporate tax rates would not be increased and that he would recommend the proposals to the finance minister.

Meanwhile, ERF proposed increasing the maximum personal income tax rate from 30% to 40%, introducing a uniform VAT rate of 7%, raising the tax-free income threshold to Tk5 lakh in line with inflation, and making it mandatory to pay tax for individuals owning five-storey buildings.