In the face of challenges brought on by globalisation and the surge in digital media, Bangladesh’s newspaper industry is seeking crucial reforms in tax policies, customs duties and corporate taxes.

AK Azad, president of the Newspaper Owners’ Association of Bangladesh (NOAB), stressed the necessity for significant changes during the pre-budget discussion for the fiscal 2024-25, held at the National Board of Revenue (NBR) conference room in Agargaon, Dhaka, on Sunday.

He highlighted the impact of the increasing exchange rate of the dollar on the global economy, particularly affecting the newspaper industry. The cost of newsprint, which was once less than US$600 per tonne, has now risen to more than $700. Azad attributed this increase to the adverse exchange rate between the taka and the dollar.

Despite the import duty on newspapers being 5%, the cumulative effect of 15% VAT, advance income tax, transport insurance, etc., results in a landed cost that is around 30% higher.

Azad proposed specific measures during the discussion, suggesting that the import duty on newsprint be reduced to 2%, VAT be lowered to 5% (from the current 15%), and corporate tax for the newspaper industry be minimised or eliminated, considering it as a service industry. Expressing frustration with the government's lack of consideration for their proposals in recent years, Azad urged the authorities to take their recommendations into account in the upcoming budget.

Mahfuz Anam, editor of the Daily Star, contributed to the discussion, noting that while paying taxes is a universal practice, newspapers in other countries, such as India, Pakistan, and Sri Lanka, enjoy lower tax rates. He urged a reconsideration of the tax structure for newspapers in Bangladesh.

NBR Chairman Abu Hena Md Rahmatul Muneem acknowledged NOAB’s proposal and expressed his willingness to consider it.