As Union Finance Minister Nirmala Sitharaman prepares to present the first Union Budget of the newly-elected NDA government on July 23, all eyes are on the potential impact on various sectors. The print industry, in particular, is hopeful that their longstanding concerns should finally be addressed.
Industry players are anticipating measures that could provide much-needed support and foster growth in this medium. They have largely voiced a unified call for the removal of the 5% custom duty on newsprint.
Industry players emphasised that the survival of print media is essential for the world’s largest democracy. Newspapers play a crucial role by providing a cost-effective means of disseminating information to the public. Additionally, they support the government’s initiatives by informing citizens about policies and social welfare programs too.
In a conversation with Marketing Mind, Rakesh Sharma, President, Indian Newspaper Society (INS) emphasised that first and foremost, he expects this budget to eliminate the custom duty on newsprint. Moreover, he explained that the newsprint comprises as much as 65% of the component in newspaper production.
“In our country, the indigenous production of newsprint is insufficient to meet industry demand, necessitating the import of literally 50% from foreign countries. In 2019, the government imposed a 5% custom duty on newsprint. Therefore, I have appealed to the government, specifically the finance ministry to withdraw this custom duty immediately,” he added.
Furthermore, he went on to say, “I have also requested a significant reduction in customs duty on imported mail room equipment, as it is not produced in our country. Additionally, I have sought a reduction in customs duty for high-speed machines imported from abroad.”
Also, currently, the GST on e-paper subscriptions is 18%, and Sharma believes there should be no GST on the sale of e-paper.
Striking a similar tone, Sivakumar Sundaram – CEO (Publishing) BCCL highlighted that the budget is expected to stimulate private consumption, by investing in initiatives to increase employment and perhaps reducing income tax rates. This will have a positive impact on advertising during the festive season as it will act as a multiplier on the large number of e-commerce sales festivals, car launches, and mobile phone launches already planned over the next three months.
“We are also hoping that the government will consider the removal of the 5% custom duty on newsprint and reduction of customs duty on high-speed printing presses,” he added.
Similarly, Varghese Chandy, Vice President – Marketing and Advertising Sales, Malayala Manorama, shared that the newsprint import duty should be waived off as the volatility in newsprint prices due to multiple geopolitical reasons.
“Additionally, GST on advertising should be waived off as most of the print media is struggling post covid and Income Tax reliefs for personal income that will kick start the consumer sentiments with higher disposable income in hand.”
Abhishek Karnani, Director, The Free Press Journal, said that from the industry perspective, to support the print industry, the Directorate of Advertising and Visual Publicity (DAVP) rates should be increased as it’s really been very long since it has been revised.
“We propose that the present custom duty of 5% on import of newsprint be reduced to NIL,” he added.
