The Danish government has announced the elimination of a 25% sales tax on books in a bid to address what it describes as a “reading crisis.”
This tax is among the highest globally. Culture Minister Jacob Engel-Schmidt expressed hope that its removal would stimulate book sales and encourage reading.
The measure is projected to cost approximately 330 million kroner ($50 million, £38 million) annually.
Data from the OECD, a prominent intergovernmental organization, indicates that a quarter of Danish 15-year-olds struggle to comprehend simple texts.
“The reading crisis has unfortunately been spreading in recent years,” stated Engel-Schmidt, adding that he was “incredibly proud” of the decision to abolish the tax.
He further commented that “massive money should be spent on investing in the consumption and culture” of the Danish population.
In comparison, Finland, Sweden, and Norway, which also maintain a standard Value Added Tax (VAT) of 25%, apply VAT rates of 14%, 6%, and 0% to books, respectively. The United Kingdom also exempts books from VAT.
Mads Rosendahl Thomsen, vice-chair of the government’s working group on literature, noted surveys revealing declining reading and comprehension levels among Danish teenagers.
He told the BBC that while younger children can readily improve their reading skills, “at 15 the ability to understand a text is pretty important”.
He described the OECD research findings as “pretty shocking.”
He suggested that young people face reading challenges due to having “so many options” and being “easily distracted.”
While acknowledging that removing VAT on books is not a panacea, he believes it will make books “more accessible.”
The government’s working group on literature has also explored strategies for exporting Danish literature, digitizing the book market, and addressing the impact on authors’ compensation.