Denmark's culture minister, Jakob Engel-Schmidt, announced on 20/8 that the government will abolish the 25% value-added tax (VAT) on books. This move comes as he addresses what he calls a "reading crisis that has spread in recent years."
According to a report from the Organisation for Economic Co-operation and Development (OECD), 24% of 15-year-olds in Denmark currently do not fully comprehend a simple text, and their deep reading and inferential comprehension skills have declined.
Researchers explain that frequent use of phones and social media can make young people easily distracted and struggle to focus when reading. The minister expressed concern about this, adding that in many cases, books are more expensive than a month's subscription to online services like movies and music.
"Online and printed books are losing out in the competition with streaming services," Engel-Schmidt said. "And we want to create a more level playing field."
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A bookstore in Denmark. Photo: The Guardian |
A bookstore in Denmark. Photo: The Guardian
In Denmark, books are among the goods subject to a 25% VAT, one of the highest rates in Europe. Other Nordic countries have reduced or completely eliminated taxes on books: Finland (14%), Sweden (6%), and Norway (0%), despite sharing the standard 25% VAT rate. If implemented, this change will cost Denmark 330 million kroner (51 million USD) annually. Engel-Schmidt stated that "such a large sum should be invested in culture and people's consumption habits."
The minister emphasized that eliminating the VAT on books is not a complete solution, but it will make books "more accessible and sell better". Publishers, authors, and booksellers agree with this initiative, believing it will also encourage writers to invest more in new literary works. Christine Bodtcher-Hansen, director of Danske Forlag, a group representing Danish publishers, revealed that book prices are expected to decrease by 16-20%.
The effectiveness of this measure will be assessed after four years. "If the tax exemption only increases publishers' profits while book prices remain unchanged, we will have to re-evaluate and adjust," the minister said.
Many experts believe it is difficult to accurately estimate the policy's results. Sweden reduced the VAT on books in 2001, leading to increased sales, but analysis showed that most buyers already had established reading habits. Nevertheless, it is still considered "the right thing to do," especially in making textbooks and children's books more accessible.
In addition, to promote reading culture, the Danish government is strengthening cooperation between public libraries and schools nationwide. This will allow more children to learn and read good literature from an early age.
Khanh Linh (Guardian, BBC, AFP)
