(IAPA/IFEX) – The following is a 16 April 2002 IAPA press release: IAPA calls for newspaper tax in Argentina to be scrapped MIAMI, Florida (April 16, 2002)-The Inter American Press Association (IAPA) today called on the Argentine government to annul value added tax (VAT) levied on newspapers, calling it “an excessive tax burden” that could […]
(IAPA/IFEX) – The following is a 16 April 2002 IAPA press release:
IAPA calls for newspaper tax in Argentina to be scrapped
MIAMI, Florida (April 16, 2002)-The Inter American Press Association (IAPA) today called on the Argentine government to annul value added tax (VAT) levied on newspapers, calling it “an excessive tax burden” that could lead to some news media having to close down, thus bringing severe consequences for freedom of the press.
In a message to President Eduardo Duhalde, IAPA President Robert J. Cox referred to the current economic crisis in Argentina that is hurting media in the provinces in particular and called for the annulment of VAT on newsprint, advertising and distribution of newspapers, magazines and periodicals, saying that Argentina is the country with the highest tax of this kind.
The letter signed by Cox, assistant editor of The Post and Courier, Charleston, South Carolina, said (full text):
“Mr. President:
“I write on behalf of more than 1,300 publications throughout the Americas belonging to the Inter American Press Association to express our great concern at the severe crisis being faced by the print media in your country that are experiencing a decrease in advertising revenue and an excessive tax burden that could well bring serious consequences for the necessary climate of freedom of the press that ought to reign in a democracy.
“We are aware of the fact that the economic recession is affecting all sectors, but it is our duty to point out that the large tax levies on the media, especially value added tax on newsprint, advertising and distribution worsens even further the economic crisis that is hurting this sector. By imposing this tax burden, Argentina has become the country with the highest tax on newspapers, magazines and periodicals. We therefore respectfully request the annulment of the value added tax (VAT) on newsprint, advertising and sales.
“If there is no effective resolution of the problem we fear that many newspapers and magazines will have to shut down. It is precisely at a time of a failing economy and of social crisis when there is most need for an independent, robust and pluralist press to ensure a rigorous control of the actions of government and allow people greater access to information of all kinds.
“We are especially concerned at the plight of small and medium-sized newspapers and magazines in the provinces that are overwhelmed by the financial crises that particularly beset the regional economies. Furthermore, the provincial press has warned of the need for a government policy for the fair and equitable placement of official advertising, based on technical criteria.
“The situation is even worse if one takes into account that newspapers are having to pay some 270% more for their imported supplies, taking into account devaluation of the currency and a 100% increase in the price of newsprint – increases they cannot pass on to their readers.
“For all the aforementioned reasons, Mr. President, we urge you to reconsider the excessive tax burden so that it does not end up being a cause for the closure of sources of information that are crucial to institutional life and the well-being of the country.”
