New 5% Tax on Imported Newspaper Paper Aims to Save Print Jobs

What happened?

South Africa now charges a 5% tax on newsprint brought in from other countries. Newsprint is the paper used to print newspapers, flyers and advertising inserts. The trade group Itac made the decision after Sappi asked for help. Sappi says cheaper imports were hurting its Ngodwana Mill in Mpumalanga. The tax will be checked again after three years.

Why it matters for jobs

The Ngodwana Mill is the only newsprint plant still running in South Africa and the Southern African Customs Union. It supports about 1,500 direct jobs and 5,000 indirect jobs. It also adds about R9.9 billion to Mpumalanga’s economy each year. If the mill had to close or cut back, many families and local businesses could feel the pain.

• Imports of newsprint grew by about 13% on average from 2021 to 2025.
• Local production fell by about 11.7% over the same period.
• Factory use fell from 68.5% to 46.1%.
• The local market share fell from 60.8% to 51.1%.
• Canada, Brazil and Norway are the biggest sources of imports.

This is not only about one paper mill. The whole print and paper industry is under stress as more news and ads move online. Earlier this year, packaging company Mpact gave retrenchment notices to nearly 400 workers in its carton board business because of cheap imports. The trade minister has also ordered a full review of the paper and paper products sector. That means jobs in paper making, printing, packaging, machine operation, maintenance and logistics could all be affected by these decisions.