The government’s decision to levy 5 per cent customs duty on imported books has not found much favour with the publishing industry, which feels ease in claiming GST-related benefits and availability of cheaper paper would have rather helped Indian publishers.
Finance Minister Nirmala Sitharaman announced a duty hike on foreign-made books from nil to 5 per cent during her Budget speech, saying that the move was aimed to encourage domestic publishing and printing industry.
Aditi Maheshwari Goyal, executive director of Vani Prakashan Group said that GST on uncoated and light weight paper was 12 per cent and now it is 10 per cent. She added that this could have been a welcome move, but the other increments on the same segment will nullify this. She also fears the impact of GST on sales of books as it was nil earlier but now it is 5 per cent. She added that there is no mechanism to claim ITC (Input Tax Credit) on  taxes paid by suppliers, the erstwhile VAT (Value Added Taxes). It was only electronic reproduction of intellectual property that was taxable earlier. Making printed books taxable at 5 per cent will highly impact that production and sales of the books.
Satyanand Nirupam, editorial director of the Rajkamal Prakashan Group, stressed on the need for a collective action on a large scale that should be taken to promote a culture of reading. He stated that he doesn’t think levying 5 per cent custom duty on imported books is going to benefit the local publishers. If one really wants to help publishers here, the rising costs of paper should be brought down, the scarcity of paper should be addressed and removed.
Some publishers felt it was too early to gauge the impact of the decision on the industry, others felt a vibrant marketplace that includes books from across the world would be good for readers.
Nandan Jha, senior vice president (product and sales) at Penguin Random House India said that it is too soon to comment on the impact and that they are evaluating the weight of this decision and how best to price their books going ahead
Juggernaut publisher Chiki Sarkar said that Indians should have access to all kinds of information and ideas and stories, not just Indian books.
According to the Federation of Indian Chambers of Commerce and Industry (FICCI), the publishing sector in India is the third largest in the world in English language publishing. It stated that current statistics reveal that the sector is truly a colossus – a giant in slumber, which needs to be awakened and given its due status and identity.
