The newspaper and magazine publishing industry has reason to smile as Union Government has announced to provide custom duty exemption on newsprint with immediate effect.

Uncoated paper, used for printing of newspapers, and light weight coated paper, used for printing magazines, has also been exempted from duty.

It should be recalled that newspaper and magazine segment has asked for duty cut on newsprint as the sector is facing tough situation in the wake of global slowdown lading to decline in sales, publishing activities and decline in revenue from advertising . However, the government has reportedly taken the decision following steep decline in international prices of newsprint and light weight coated paper.

In a yet another important decision, the Central Government has decided to increase advertising rates of the Directorate General of Audio Visual Publicity, or DAVP, by 15 per cent annulling 15 per cent discount on these advertisements.

The shares of newspaper publishers witnessed marginal increase following reports of duty cut by government. Shares of Jagran Prakashan increased 5.5 per cent at Rs
57 while Deccan Chronicle Holdings rose nearly 3 per cent in the recent trading at Bombay stock Exchange.