Duty on newsprint set to be halved

Customs duty (CD) on import of newsprint is set to be reduced to 5.0 per cent from 10 per cent to help print media cut their production cost.
Besides, another proposal on declaration of the print media as an industry is now under active consideration of the tax authority.
The National Board of Revenue (NBR) Thursday received vetting of the Law Ministry on its proposal to cut the customs duty for newsprint by 5 .0 per cent.
In the budget for the current financial year, the government increased the CD on import of newsprint for newspapers to 10 per cent from 3.0 per cent.
Customs officials said they have sent the Statutory Regulatory Order (SRO) to the Bangladesh Government (BG) Press for printing. The SRO is likely to be issued by next week, they said.
The government has finally honoured its commitment to reduce duty on newsprint and awarding newspapers the status of an industry on implementation of the eighth Wage Board for newspaper employees and journalists.
The eighth Wage Board came into force from September 11, 2013. The rate of government advertisements has also been hiked following recommendations by the ministry.
Talking to the FE Thursday, Information Minister Hananul Haq Inu said the government is set to declare the print media as an industry soon. "We decided in principle to declare newspapers as an industry. It needs one more week due to some inter-ministerial and procedural steps," he said.
The proposal needs clearance from the NBR and the Ministry of Finance, he said.
"With the declaration as an industry, newspapers will be able to enjoy tax benefits like other industries," he added.
He said the proposal is now in the NBR for approval. Industries Minister Dilip Barua also said the issue is now awaiting NBR's consent.
"We on behalf of the industry ministry have completed all our works regarding this. A gazette notification will be issued after getting NBR's consent," he said.
A senior Customs official said the Customs authorities have given its positive opinion on declaring newspapers as an industry.
"We have given the clearance as there will not be any loss of revenue for declaring the print media an industry," he added.
Newspapers are already enjoying reduced duty rates, he said.
Currently, it is defined as 'service sector' in the Customs rules, he added.
A senior VAT official also made similar remarks and confirmed that they have also given clearance to the proposal.
However, sources in the Income Tax Wing, said they are yet to receive such a proposal for clearance.  Industry sources said corporate tax rates for the newspaper sector will be reduced to 25 per cent from existing 37.5 per cent after declaring the sector as an industry.
The NBR Chairman could not be reached despite several attempts.