Home ›› 10 Feb 2023 ›› Front
Newspaper Owners’ Association of Bangladesh (NOAB) on Thursday proposed that the National Board of Revenue (NBR) reduce corporate tax on newspapers from 27.5 per cent to 10-15 per cent, taking the sector’s declining financial health into consideration.
The association also put forward a written proposal for withdrawal of existing 15 per cent VAT on newsprint import or waiver of existing 5 per cent import duty and 5 per cent AIT, considering the volatile situation of the industry.
The proposals were placed at a pre-budget discussion of the National Board of Revenue (NBR) with NOAB and Association of Television Channel Owners (ATCO) held at the NBR conference room in the city’s Agargaon area.
Presided over by NBR Chairman Abu Hena Md Rahmatul Muneem, the meeting was addressed by NOAB President A K Azad, ATCO Vice-President Iqbal Sobhan Chowdhury, NOAB members Mahfuz Anam, Shamsul Huq Zahid, Matiur Rahman, Matiur Rahman Chowdhury, and Dewan Hanif Mahmud, and NBR members Md Masud Sadiq, Zakia Sultana and Md Shamsuddin Ahmed.
Placing the budget proposals, Mr Azad said the newspaper industry has long been facing various challenges due to transformation of media from print to digital and a rise in exchange rate while revenue from advertisements has dropped significantly during the pandemic.
Mentioning that the price of newsprint in the global market increased to US$1,050 per tonne from $570 one and half years back, he said: “Considering the price hike of the key material of the sector, we propose withdrawing the existing 15 per cent VAT on newsprint import, 5 per cent import duty and 5 per cent AIT.”
“Despite a significant drop in revenue from advertisements due to the pandemic and digital media, the newspaper sector did not get any support from the government.”
Proposing a cut in the corporate tax on newspapers, Mr Azad noted that although the sector does not generate that much profit and the service sector, it pays corporate tax at the highest rate as like profitable companies.
“The newspaper industry pays 27.5 per cent corporate tax, which shouldn’t be more than 10-15 per cent.”
Besides, he proposed reducing tax deducted at source (TDS) on income from advertisements from 4.0 per cent to 0 per cent, and abolishing existing 5.0 per cent advance income tax (AIT) on raw material.
Matiur Rahman said there are few companies which are able to earn their income and can survive. Everything is changed and our cost also increased due to cope with the digital era. NBR has to take the NOAB proposal into consideration for survival of the industry.
Mahfuz Anam laid stress on the justified tax system and saying, “Ensuring a fair and good tax system is a must for a state to run in a good way.”
NOAB also requested the NBR to relieve newspapers from paying the income tax of its workers, as no other industry does so.
Responding to that proposal, the NBR chairman said newspapers pay the income tax of their workers as per the wage board rules for the sector. The NBR has nothing to do with it as the issue is not within its jurisdiction.
He added: “It is true that the news organisations don’t generate that much profit. Considering the sector a special one, the NBR will think whether its corporate tax can be reduced or not.”
Iqbal Sobhan Chowdhury proposed withdrawal of VAT and duty on capital machinery at import level.
He also proposed withdrawal of deducting 10 per cent source tax as remitters get stimulus on sending dollar home, the bank deduct 10 per cent source tax on foreign remittance earning by television from Facebook and YouTube.
