NOAB slams move for 100pc duty on newsprint import

The demand for imposing 100 per cent duty on the import of newsprint by the Bangladesh Paper Mills Association is part of a conspiracy to destroy the country’s newspaper industry, observed the Newspaper Owners Association of Bangladesh (NOAB).
In a statement issued yesterday it said, if this demand was materialised, the free flow of information would be hampered and survival of the newspapers, independently, impossible.
It will also make the life of the journalists and newspaper workers of the industry uncertain as purchasing of newsprint contributes to 80 per cent of a  newspaper’s expenditures.
NOAB apprehends that if the import cost was increased, the newspapers would have to face severe financial crisis due to the extra expenditure and, as a result, no newspaper would be able to provide its staff their due wages and salaries as per the rule.
In the face of NOAB’s long standing demand, import duty on newsprint was brought down to zero from 30 per cent in the budget of the 2007-2008 fiscal year.
“Despite that, according to the present rule, we are depositing 19 per cent money (duty 15 per cent, income tax three per cent and PSI one per cent) on the imported newsprint to the government exchequer. Moreover, the Seventh Wage Board award was implemented from June 8, 2008 under the condition that the import duty on newsprint would be made zero. This has made the cost of the newspaper institutions increase greatly,” the statement said.
NOAB said, the newspapers were somehow bearing the increased expenditure as there is scope for importing newsprint without duty at present but if 100 per cent duty was imposed, this would no more be possible.
NOAB also observed that no newspaper would be able to continue giving the due wages and salaries of the staff according to the Seventh Wage Board award if 100 per cent duty was imposed on the import of newsprint as per the demand of the Bangladesh Paper Mills Association.
As per their demand, if purchase of 50 per cent local newsprint is materilised, then the newspapers will have to buy low quality local newsprint at a high cost, it added.
Cost of import would also be increased with the rise in the rate of duty so, if the rate was raised to 100 per cent, the newspapers would fall into a deep crisis in either ways.
Reminding the government of its pledge to bring about changes in the society, NOAB hoped that government would continue with the zero import duty on newsprint in order to keep the newspapers independent and free flow of information unhampered.
NOAB pointed out that although the local newsprint mills demanded rise in import duty on newsprint, they did not pay attention to improve their product qualitatively.
“The experience of the newspapers is that the quality of the local newsprint is many times inferior to that of the imported newsprint and despite that it costs Tk 10,000 higher per tonne than the foreign newsprint. The price of local newsprint is Tk 50,000 per tonne whereas the price of foreign newsprint is Tk 42,500”, it said.
Describing the trouble in using the local newsprint, NOAB said as there are several joints in a roll of the local newsprint the paper is torn many times while it is being run through the printing machine causing time-loss and raising expenditure due to the high level of wastages. 
NOAB argued that though obligatory newsprint quota system was introduced to force the newspapers to purchase the low quality newsprint during the previous rule of the Awami League government in 2001, the system had failed to enable the newspaper mills to achieve the desired quality of the newsprint till the 2007-08 fiscal year.
“Keeping the forthcoming budget in mind, the local newspaper mill owners are again trying to force the newspapers to buy their low-quality newsprint at a high cost. We think, the local newspaper mills should have to achieve the desired quality of the newsprint through market competition. They will have to supply newsprint at the available international price,” the NOAB statement said.
Vehemently opposing the move of the local newsprint mills to force the newspapers to buy their newsprint in the present price and quality, NOAB felt that government should not take any decision which would destroy the present state of the country’s newspaper industry achieved through long and arduous struggle.
NOAB also sought government’s assistance to ensure survival of country’s free and independent mass media.
“Taking in view all the related matters, in order to protect the newspaper industry and lives involved with the industry from becoming uncertain, the present elected government will take its step – this is what we hope”, it concluded.    
 
Courtesy of The Independent