Bashundhara Paper Trading, a local newsprint mill, increases the price .of its Shahjalal newsprint by Tk 6,000 per tonne again horn today.

The price of newsprint has increased Tk 13,000 per tonne in the last six months, said a Newspaper Owners' Association of Bangladesh (Noab) press release. The price of local newsprint rose to Tk 45,000 from Tk 42,000 per tonne in July 2005. It became Tk 49, 000 per tonne in August, the Noab press release said.

The cost of imported newsprint stands at Tk 40,000 per tonne while the cost of locally produced newsprint becomes Tk 55,000 per tonne from today. However, the quality of the latter is much worse. Besides, the local mills are not able to supply newsprint as per demand, the release said.

On per tonne imported newsprint, the importers have to pay 25 percent import duty, 15 percent Vat, 4 percent surcharge, 3 percent advance income tax, 1 percent PSI, 0.13 percent DF Vat, port fee and charge of shipping agency, 2 percent insurance cost and Tk 23,000 for other costs. The final cost stands at Tk 63,000 per tonne of newsprint, according to the press release signed by Noab President Mahbubul Alam.

The statement said the recent situation proves that the local newsprint mills have been increasing the price, taking advantage of the imposed SRO, import duty, Vat and other excises on newsprint import.