Finance Minister Nirmala Sitharaman while presenting her maiden budget on Friday, July 5, announced a 10 per cent customs duty on newsprint.
Association of Indian Magazines (AIM) has urged the Union government to withdraw the duty imposed on newsprint and is seeking a meeting with the FM. Finance Minister Nirmala Sitharaman while presenting her maiden budget on Friday, July 5, announced a 10 per cent customs duty on newsprint.
In a statement, R Rajmohan, president, Association of Indian Magazines says, "The announcement of 10 per cent customs duty on paper used by newspapers and magazines, on the Union Budget, is highly unfortunate. This is a double whammy for Print media which is going through unprecedented crises due to declining revenues, caused by the prevailing macro economic conditions. At this point of time it is a massive cost impact. Paper being a major element in the cost, any rise in cost will have huge negative implications. There was no duty and now there is a 10 per cent duty."
"There are reasons why the industry enjoys some benefits being in the space of knowledge and information dissemination. Increase in cover prices is already an issue and the prices have gone up for newspapers and magazines. Malaya Manorama has a price of Rs 7.50 for weekdays and Rs 8 for Sunday. We have almost reached a point where passing the burden on to the readers has become unviable and not advisable. We are seeking a meeting with the finance ministry to present our case," he adds.
Apart from his role at AIM, R Rajmohan is CMO North, Malayala Manorama.