Newspaper owners have urged the government to cut the corporate tax rate and ease multiple fiscal burdens on the sector in the budget for the upcoming fiscal year (FY) 2026-27, warning that rising costs are threatening the industry's sustainability.
The Newspaper Owners' Association of Bangladesh (NOAB) placed the demands at a pre-budget meeting with National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan at the board's headquarters in Dhaka on Tuesday.
The NOAB leaders called for reducing the corporate tax rate for the newspaper industry to 10 per cent from the existing 27.5 per cent, arguing that newspapers are being taxed like conventional businesses despite serving for public good.
"A reduced corporate tax rate of 10 per cent would be a justified and timely policy support," said NOAB President Matiur Rahman Chowdhury, noting that the priority sectors enjoy tax rates at 10-12 per cent while the newspaper sector receives no such benefit.
The association also sought a package of fiscal measures, including withdrawal of import duty on newsprint, removal of value-added tax (VAT), and reduction of advance income tax (AIT) and tax deducted at source (TDS).
According to NOAB, newsprint - the primary raw material for newspapers - is currently subject to a 3.0 per cent import duty, 15 per cent VAT, 5.0 per cent AIT, and around 7.5 per cent in other charges. With transport and related costs, the total landed cost rises to 130-132 per cent.
The organisation said the cost structure, coupled with rising global paper prices and heavy reliance on imports, has placed the sector under severe financial strain.
"The industry is going through a critical phase. Without immediate fiscal relief, sustaining its operations will become increasingly difficult," Mr Chowdhury said, 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 5.0 per cent TDS on advertisement income and a 5.0 per cent AIT on raw material imports create a 10 per cent upfront tax burden, often exceeding profit margins.
As a result, a significant portion of these taxes remains unadjusted, locking up funds and creating liquidity pressure for the media houses.
"Reducing TDS on advertisement income and AIT on imports is crucial to ease cash flow pressure."
The association further noted that the newspaper industry did not receive incentives during or after the Covid-19 pandemic, and also called for special policy support in recognition of its role.
The publishers pointed to inconsistencies in employee income tax rules. While the Income Tax Act 2023 places the burden on individuals, the Newspaper Wage Board requires the respective organisations to bear it. They urged alignment between the two frameworks.
Responding to the proposals, the NBR chairman said the issues related to AIT, TDS and VAT would be reviewed and placed before the finance minister. The government does not have any plan to increase corporate tax rates.
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