Publishers push for duty-free newsprint
The Newspaper Owners’ Association of Bangladesh (NOAB) has urged the government to withdraw a 3 per cent import duty and 15 per cent value-added tax (VAT) on newsprint and reduce the corporate tax rate for the newspaper industry from 27.5 per cent to 10 per cent, citing mounting financial pressure on the sector.
The proposals were presented at a pre-budget discussion for the 2026–27 fiscal year held at the auditorium of the National Board of Revenue (NBR) in Agargaon on Monday.
Newspaper owners highlighted ongoing economic challenges and called for policy support to help sustain the industry.
NOAB leaders also proposed reducing the 5 per cent tax deducted at source on advertisement income and the 5 per cent advance income tax on raw material imports, according to reports.
Presenting the proposals, NOAB President Matiur Rahman Chowdhury said the newspaper industry is facing increasing pressure due to rising production costs and declining revenues.
Editors and publishers, including Matiur Rahman of Prothom Alo and Dewan Hanif Mahmud of Banik Barta, also spoke at the meeting, which was chaired by NBR Chairman Abdur Rahman Khan.
NOAB said the newspaper business operates on a model in which production costs are considerably higher than cover prices, with advertising revenue traditionally compensating for the gap.
However, both circulation and advertising income have declined since the Covid-19 pandemic, making it more difficult for newspapers to remain financially viable.
The association noted that the price of imported newsprint has increased from around $560 per tonne six months ago to about $630 at present, while the depreciation of the local currency has further raised overall costs.
NOAB outlined several tax-related recommendations, including the withdrawal of import duty on newsprint, reduction of advance taxes, lower corporate tax rates and reforms to existing tax liabilities.
According to the association, newspapers currently pay a 3 per cent import duty, 15 per cent VAT, 5 per cent advance tax and 7.5 per cent advance income tax on newsprint imports, pushing the landed cost to around 130–132 per cent, which it described as unsustainable.
The group said that the combined tax burden from source tax on advertisements and advance income tax exceeds profit margins in many cases, leading to unadjusted tax credits and cash flow difficulties.
Although newspaper publishing is VAT-exempt, NOAB pointed out that a 15 per cent VAT is still imposed on imported newsprint and urged its withdrawal.
The association also proposed reducing the current 27.5 per cent corporate tax rate to 10 per cent, noting that several priority and export-oriented sectors benefit from lower tax rates ranging between 10 per cent and 12 per cent.
In addition, NOAB called for removing the requirement for newspaper companies to pay income tax on behalf of employees, arguing that under general tax law individuals should be responsible for their own tax payments.
The association further requested special financial incentives for the newspaper sector, noting that it was not included in government stimulus packages introduced during and after the Covid-19 pandemic.
Matiur Rahman Chowdhury warned that rising global fuel prices and domestic supply constraints could further affect newspaper production and distribution.
He said operational expenses, including salaries, office rent, management and distribution costs, remain high, while many newspapers are struggling to cover expenses and some are operating at a loss.
Matiur Rahman said the cost of producing a single copy of a newspaper is around Tk28, while both readership and advertising income continue to decline, adding that the industry requires policy support similar to other sectors.
Dewan Hanif Mahmud also raised concerns over increasing tax pressure on compliant taxpayers and suggested reviewing the country’s tax-to-GDP calculations.
Responding to the concerns, NBR Chairman Abdur Rahman Khan said the corporate tax rate for the newspaper industry would not be increased and assured that other tax and duty-related issues would be considered in a rational manner in the upcoming budget.
