Print media future salvageable if gov’t waives taxes — sector leaders

AMMAN – With the increase in new media use in Jordan, many newspapers and print media are struggling to maintain a steady income. 

Recently, Ad Dustour, Jordan’s oldest daily newspaper faced formidable financial difficulty that left its management unable to pay salaries for months. 

On Tuesday, 60 MPs signed a memo requesting a special Lower House session to discuss the issue of challenges facing newspapers. 

The memo, a copy of which made available to The Jordan Times, said that newspapers in Jordan are facing "huge" financial woes that have affected their staff and ultimately the quality of journalism in the country. 

In separate interviews with The Jordan Times, stakeholders said the key solution to rescue the industry lies in the hands of the government, demanding tax and production input exemptions to salvage the outlets that employ thousands of people. 

However, Ad Dustour Chief Editor Mohammed Al Tal says he believes there is no relationship between the decline of print media and the rise of new media. 

He says one of the issues is lack of support from the government. 

“Jordanian newspapers, unlike the other Arab media or international media, do not receive subsidies from the government,” he said. “On the contrary, we pay taxes to the government and are treated like any other industrial institution.” 

Tal says the decline in newspaper sales in Jordan, combined with the lack of support from the government, will lead to closing down papers and leave thousands jobless. 

“We ask the government to freeze or cancel all forms of taxes and fees so that we do not reach a point where we ask for direct subsidies.” 

President of the Jordan Press Association (JPA) Tareq Momani described the current government as the least involved in media relations in recent history and joined Tal in the demand for pardoning newspapers from taxes as a better alternative than direct financial support. 

One suggestion Momani proposed was unifying the prices of newspaper ads for both the government and private institutions, in other words, removing the mandatory discounts given to public agencies. 

Currently, the government pays for ads by word, while private institutions pay by space, according to Momani. If the method of calculation adopted is the space, the newspapers’ incomes would increase, he said. 

Khalil Shoubaki, assistant chief editor of Al Rai, agreed that declining ad revenues have dramatically impacted newspapers’ financial stability in Jordan in recent years. In fact, the cost of ads had fallen by 25 per cent in the past five years, according to the editor. 

However, where other papers seem to be struggling for income, Al Rai says they still make more than enough money from ads to continue to print at a comfortable level, he said. 

Despite this, Shoubaki said he does not think the government will help newspapers out the way others may want them to. 

“The government won’t help even if it thinks papers will shut down,” he said, but he believes that this will not happen anytime soon, especially if a new approach is adopted.  

“Print media outlets need to focus on innovation and the creation of new projects in order to generate the money they need, instead of relying mainly on ads, he said.” 

“We need to change the way we do journalism and incorporate the good aspects of new media.”

For example, he said, newspapers should invest some of their assets in profitable projects such as society-oriented magazines or radio stations. 

Dhaher Al Damen, JPA board member, called on the government to exempt, even if temporarily, newspapers from paying the 16 per cent sales tax imposed on imported production input such as paper rolls, ink and machines. 

Newspapers also pay income tax, he said, adding tax exemptions would be very helpful to enable print media stand on their feet again. 

Damen said newspapers in several democratic countries such as Sweden and Norway are financially supported by government in order to help the industry survive and carry out its role as a monitoring authority.