Noab calls for lifting duty-tax on newspapers

The Newspaper Owners Association of Bangladesh (Noab) demanded on Thursday the withdrawal of the customs duty and the advance income tax (AIT) on the imports of newsprint for the newspaper industry.

"It is very urgent to withdraw taxes in this critical situation of the newspaper industry," said Noab President AK Azad at a pre-budget discussion arranged by the National Board of Revenue (NBR).

On the import of newsprint, the newspaper industry currently pays 5% customs duty, 15% value-added tax (VAT), and 5% AIT.

The Noab president said that the revenue authorities impose a total of 9% advance tax, including AIT and a 4% tax deduction at source on advertisement income.

According to the Noab, most newspaper houses do not have a 9% profit, and still it is not possible for them to get the adjustment with income tax payable at the end of the income tax year. As a result, the tax paid in advance by the organisations remains due to the government.

In such a situation, the Noab called for withdrawing these taxes.

It also demanded that the corporate tax on newspapers be reduced from the existing 27.5% to 15%, and that the employees' income tax should not be imposed on the organisations.

Association of Television Channel Owners (Atco) Vice President Iqbal Sobhan Chowdhury said, "Except for two to three television houses, no one can make a profit. However, due to non-cooperation and unreasonable demands of the taxmen, the deducted source tax is not refunded later. That is why this tax should be abolished."

NBR Chairman Abu Hena Md Rahmatul Muneem, who presided over the discussion at the NBR's new building in the capital's Agargaon, assured the taxpayers of the refund.

"Not adjustments; instructions have been given that advance taxes will be refunded from now on. If you don't get the refund, make a written application to the commissioner. If you don't find it there, tell us directly," he said.

"Without the practice of refunding, the culture of paying taxes will not develop," he added.

At that time, the Atco vice-president said, "Just as taxpayers are penalised for not paying taxes on time, similarly, there should be a provision to penalise the NBR for not paying refunds on time."

Besides, Iqbal Sobhan Chowdhury called upon the NBR to stop the harassment of taxpayers and increase the facilities for those who are good taxpayers.

Noab member and Editor and Publisher of The Daily Star Mahfuz Anam, The Prothom Alo Editor and Publisher Matiur Rahman, Noab Treasurer and Manabzamin Editor-in-Chief Matiur Rahman Chowdhury were also present at the discussion.
 
Referring to the tax scare and harassment of taxpayers, the NBR chairman said the tax net will not increase if the tax scare is not removed.

"Audits cause tax scares," he added.

Stating that NBR is preparing a manual to eliminate this fear of audits, he said, "The manual that is being prepared will not create fear in the audit. Audits will be done after obtaining secondary data and evidence."