Owners and editors on Thursday expressed concern over the budgetary proposal to withdraw the concessional facility to import newsprint,
saying that it would deal a severe blow to the newspaper industry.
They expressed the concern after Finance Minister AMA Muhith placed the National Budget for 2013-2014 fiscal in Parliament on Thursday afternoon.
They suggested that the government restore the concessional facility to import newsprint for the sake of protecting the industry.
Talking to The Independent, Daily Samakal editor Golam Sarwar said, the proposal to withdraw concessional facility to import newsprint would threaten the newspaper industry.
“It will create a tremendous pressure on newspaper industry. Publication of major newspapers will be difficult,” he added.
Golam Sarwar, who is also the president of newly formed Editors’ Council, hoped that the Newspapers Owners’ Association of Bangladesh (NOAB), Editors’ Council and journalists union would discuss the matter immediately and take action.
In his reaction, News Today Editor Reazuddin Ahmed said, the newspapers industry would collapse if the concessional facility to import newsprint is withdrawn.
The freedom of newspapers would be at stake and many newspapers would be compelled to cease their publication, if the facility is withdrawn, he added.
Iqbal Sobhan Chowdhury, president of a faction of Bangladesh Federal Union of Journalists (BFUJ) hoped that the Prime Minister and the Finance Minister would reconsider the withdrawal of concessional facility to import newsprint, which was given to the industry earlier.
“Usually a facility given earlier is not taken away,” he added.
He hoped that if the owners and editors of newspapers call for a revision of the proposal, the Prime Minister and the Finance Minister would consider it.
The Finance Minister in his budget speech argued that the “total tax incidence for the newsprint for publication industry is 23.45 per cent including 3 per cent customs duty, whereas the total taxes incidence for commercial importers is 61.09 per cent”.
“As a result, domestic paper manufacturing industries are facing uneven competition. In view of this situation the concessional facility applicable to newsprint when imported by newspaper and publication sector is being proposed to be withdrawn,” he said.
Muhith further said, “bamboo, the main raw material for the production of pulp is presently chargeable with 12 per cent customs duty, while the intermediate product pulp is subject to no customs duty”.
“This being an anomaly, and for the greater interest of the pulp and paper industries, this item is proposed to be fully exempted from payment of any customs duty,” he explained justifying his proposal.
The Minister further said, at present there are 67 paper industries in the country. They can annually produce almost 3 lakh tonnes of newsprint, while there is an annual demand for about 1.2 lakh tonnes.
Newspaper and publication industries together import about 0.50 lakh tonnes, annually enjoying concessionary rate of customs duty, he added.
-With The Independent input
