Reduction of book prices in Denmark potentialized
In a recent development, Denmark's Minister of Culture, Jakob Engel-Schmidt, has expressed his desire to make reading more accessible by proposing the abolition of Value Added Tax (VAT) on books. This move, if implemented, could potentially lower the cost of books, particularly appealing to younger demographics who expressed a preference for purchasing more books if prices were lower in a 2024 analysis by the Danish Chamber of Commerce.
However, it is essential to note that there has been no reported political agreement or decision regarding this VAT exemption on books as of yet. Engel-Schmidt has stated that he is making a "clear statement" regarding the VAT on books, but has not confirmed if it will be discussed in the 2026 budget negotiations, scheduled for the autumn.
The cost to the Danish state of scrapping VAT on books is estimated to be approximately 300 million kroner, according to Minister Engel-Schmidt himself. This proposal is based on a government-commissioned analysis that suggested removing the 25% tax from both digital and print books, as recommended in a report published in May this year.
The potential VAT exemption on books could have significant implications for literacy and the books industry. A group behind the report suggests that such a move could potentially boost literacy and the books industry. However, the article does not provide information on how this potential VAT exemption might affect the overall Danish budget or economy.
It is important to note that Denmark currently has the highest VAT rate (25%) on books among world countries. Neighbouring countries Sweden and Norway have separate rules for books, with Sweden reducing VAT to 6% and Norway exempting it altogether.
Book shops, publishers, and authors have previously called for books to be exempted from VAT, but without securing political support. Engel-Schmidt's proposal, if realised, could mark a significant shift in this regard.
Despite the potential benefits, it is crucial to consider the broader implications of this proposal. The high prices of books in Denmark often exceed 250 kroner for recently-released hardbacks or novels. Whether the proposed VAT exemption would lead to a significant reduction in book prices is yet to be seen.
In conclusion, while Jakob Engel-Schmidt has proposed the VAT exemption on books to make them cheaper and boost literacy and the books industry, no political agreement or decision regarding this matter has been reported as of yet. The potential impact on the Danish economy and budget remains uncertain.
Art and culture enthusiasts might find an upcoming change in Denmark's book market intriguing, as the Minister of Culture, Jakob Engel-Schmidt, has suggested a VAT exemption on books to make them more affordable. This move, if accepted, could have significant implications for the literacy rates and the overall books industry in Denmark, but the broader impact on the Danish economy and budget is yet to be seen.