INS seeks stimulus package from the government
With no advertising from the private sector or economic activity, in the next six-seven months, the industry stares at a possible loss of Rs 12,000 crore - Rs 15,000 crore
The Indian Newspaper Society (INS) has urged the government to release a strong stimulus package along with other relief measures to help the ailing newspaper industry tide over losses.
The newspaper industry has already suffered losses to the tune of Rs 4,000 crore – Rs 4,500 crore in the last two months, INS revealed in a presentation to the government. With no advertising from the private sector or economic activity, in the next six-seven months, the industry stares at a possible loss of Rs 12,000 crore -- Rs 15,000 crore.
In the face of such tremendous losses, the industry has been struggling to disburse salaries or pay vendors. Over 30 lakh people are dependent directly or indirectly on the newspaper industry.
To avert the collapse of the industry, INS has put forth certain recommendations for the government.
"In our various communications we have requested for withdrawal of five per cent customs duty on newsprint. Newsprint cost accounts for 40 to 60 per cent of the total cost for publishers. The removal of the five per cent customs duty on newsprint will have no impact on domestic manufacturers or any 'Make in India' efforts," INS said in a letter to the government.
A two-year tax holiday for the newspaper firms, 50% increase in advertising rate Bureau of Outreach and Communication (BOC) and a 100 per cent increase in budget spend for print media are the other demands put forth by INS.
It also urged the BOC and various state governments to settle the payments of all outstanding advertising bills.
