Publishing industry not one over customs duty waiver on newsprint

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Mumbai, Apr 24: Even as the Indian Newspaper Society (INS) has been seeking a waiver on the 5% customs duty that exists on imported newsprint, some leading publishers feel the move is irrelevant. N Murali, joint managing director, Kasturi & Sons (publisher of The Hindu) believes the body is barking up the wrong tree. “5% customs duty is a negligible amount, it is irrelevant if you ask me.”

M P Veerendrakumar, chairman & managing director of Mathrubhumi believes more needs to be done in addition to the 5% customs duty waiver asked by the body. “There’s a 4% value-added tax levied on newsprint in a few states including Kerala. This takes up the duty structure to 9%.

This has to go. Besides, domestic newsprint manufacturers have increased their price significantly in recent months. I don’t think this is justified.”

In the last one-month, domestic newsprint prices have gone up by Rs 9,000 touching Rs 35,000 per tonne from the earlier Rs 26,000. For the record newsprint costs make up 60-65% of a publishers total production cost.

Hindustan Newsprint, in particular, which is a key manufacturer of newsprint in the country, is said to be charging this figure. Others such as Mysore Paper Mills have priced their newsprint a bit lower at about Rs 33,000 per tonne.