Denmark Eliminates 25% VAT on Books to Combat Reading Crisis

What's Happening?

Denmark has decided to eliminate its 25% value-added tax (VAT) on books, a move aimed at addressing the country's declining reading levels. The decision was announced by Danish Minister of Culture Jakob Engel-Schmidt, who emphasized the need to tackle the 'reading crisis' affecting Danish youth. The VAT removal is expected to cost Denmark approximately 330 million kroner annually. This initiative follows the European Commission's 2021 decision allowing EU member states to reduce or eliminate VAT on essential goods, including books. Denmark joins Czechia and Ireland as EU countries with zero VAT on books, a measure supported by the Federation of European Publishers.

Why It's Important?

The removal of VAT on books in Denmark is significant as it aims to reverse the trend of declining reading skills among Danish youth. According to OECD figures, a quarter of 15-year-olds in Denmark struggle with reading simple texts. By making books more affordable, the Danish government hopes to encourage reading and improve literacy rates. This move could also stimulate the publishing industry by increasing book sales and supporting authors, publishers, and booksellers. The decision reflects a broader European trend towards reducing VAT on cultural goods, potentially influencing other EU countries to adopt similar measures.

What's Next?

The Danish government's decision may prompt other EU member states to consider similar VAT reductions on books, potentially leading to a wider European initiative to support literacy and cultural consumption. The Federation of European Publishers is likely to continue advocating for favorable VAT rates across Europe. In Denmark, the impact of the VAT removal on reading habits and book sales will be closely monitored, with potential adjustments to the policy based on its effectiveness in addressing the reading crisis.

Beyond the Headlines

The elimination of VAT on books in Denmark highlights the cultural and educational importance of reading in society. It raises questions about the role of government in promoting literacy and cultural engagement. The move may also spark discussions on the accessibility of cultural goods and the economic implications of tax policies on consumer behavior. Long-term, this policy could contribute to a shift in how European countries prioritize cultural and educational investments.