Eliminate taxes on newsprint imports to save newspapers: Noab

Newspaper owners today urged the government to scrap import duty, advance income tax (AIT) and value-added tax (VAT) on newsprint in the national budget for fiscal 2026-27, warning that mounting fiscal burdens are threatening the industry’s survival.

The Newspaper Owners’ Association of Bangladesh (Noab) raised the issue with NBR Chairman Md Abdur Rahman Khan at a pre-budget meeting with stakeholders at the revenue board’s headquarters in Dhaka.

Newsprint, the primary raw material for newspapers, is currently subject to a 3 percent import duty, 15 percent VAT, 5 percent AIT and around 7.5 percent in other charges, according to Noab. With transportation and ancillary costs, the landed cost rises to 130-132 percent.

The association said the cost structure, alongside rising global paper prices and Bangladesh’s heavy reliance on imports, has placed the sector under severe financial stress.

“The industry is going through a critical phase. Without immediate fiscal relief, sustaining operations will become increasingly difficult,” said Noab President Motiur Rahman Chowdhury, calling for a full withdrawal of import duty on newsprint.

Noab also highlighted the burden of advance and withholding taxes. Under the Income Tax Act 2023, a 5 percent tax deducted at source (TDS) on advertisement revenue and a 5 percent AIT on raw material imports create a 10 percent upfront tax burden, even though profit margins are often lower.

As a result, a large portion of these taxes remains unadjusted, locking up funds and creating liquidity pressure for media houses.

“Reducing TDS on advertisement income and AIT on imports is crucial to ease cash flow pressure,” he said.

Newspaper owners also sought a lower corporate tax rate, arguing that newspapers are taxed like conventional businesses despite serving as a public good. While priority sectors enjoy rates between 10 and 12 percent, newspapers receive no such benefit.

“A reduced corporate tax rate of 10 percent would be a justified and timely policy support,” said Chowdhury.

They also pointed out inconsistencies in employee income tax rules. While the Income Tax Act 2023 places the burden on individuals, the Newspaper Wage Board requires organisations to bear it. Publishers called for alignment of the two frameworks.

In response, the NBR chairman said proposals on AIT, TDS and VAT would be considered and placed before the finance minister, adding that the government would not increase corporate tax rates.

On the issue of organisations bearing employees’ taxes, he said, “We will propose in the next Wage Board to consider the matter,” noting that such a move could trigger demands for salary hikes.