“Newspapers merit special fiscal treatment so as to maintain a vibrant and free press so vital for the survival of our democratic polity. Newspapers are referred as the Fourth Estate and the Indian Constitution itself states that State Governments shall not tax the sale and purchase of newspapers, that there should be no sales tax, excise duty or VAT on newspaper sale. In keeping with the spirit of the Constitutional provisions, it is necessary to ensure that duties and taxes which impact newspaper production are done away with or compensated or minimised to the extent feasible. This alone will ensure a fiscal environment which sustains diversity and plurality of ownership in the press and encourages maximum coverage, readership and reach in the populace,” a delegation of the Indian Newspaper Society (INS) stated in a memorandum to the Finance Ministry, according to exchange4media.

Jacob Mathew, executive editor at Malayala Manorama, said that with the introduction of the VAT, the tax on buying and selling newsprint has risen to four percent. Previously, the sales tax in most of the states was either two percent or nothing.

“The import of major consumables like printing ink, CTP plates, films, chemicals, etc., attracts duty of about 34.14 per cent. It warrants reduction to reasonable levels as they are essential production inputs. The print media in the country is in the midst of technological transformation and modernisation. The hi-tech capital equipment that are essential for the modernisation process are in the broad category of customs duty of 34.14 per cent. This rate also needs to be brought down to reasonable levels so that the Indian print media becomes a centre of global economy – a role which it is legitimately entitled to,” he said, according to exchange4media.