The Danish government has officially decided to eliminate a hefty 25% sales tax on books as part of a strategic response to what they term a "reading crisis". This tax, one of the highest globally, has been a barrier to book accessibility, according to Culture Minister Jacob Engel-Schmidt, who believes abolishing it will stimulate book sales and encourage reading among the population. The anticipated financial impact of this tax removal is around 330 million kroner ($50 million, £38 million) annually.
Recent studies conducted by the OECD have highlighted alarming statistics, revealing that a staggering one in four Danish 15-year-olds struggles to comprehend even simple texts. This trend has raised concerns about declining literacy and reading engagement among the youth. Engel-Schmidt expressed pride in this initiative, insisting that substantial investments are needed to enhance cultural consumption and literary engagement in Denmark.
In comparison, neighboring countries, such as Finland, Sweden, and Norway impose significantly lower taxes on books – at 14%, 6%, and 0%, respectively – while the UK has also eliminated VAT on books entirely. The pressures of modern life, including distractions from digital media, have been cited by experts as contributing factors to the observed decline in reading skills among young people. Mads Rosendahl Thomsen, vice-chair of the government’s working group on literature, emphasized that while removing the VAT is not a standalone solution, it will undoubtedly make reading materials more accessible to the youth.
Additionally, the working group is exploring avenues to enhance the promotion of Danish literature, digitizing the book market, and examining authors' compensation. These multifaceted approaches underscore the government’s commitment to revitalize national reading culture amidst rising challenges.
