This decision is part of a broader strategy to enhance literacy and accessibility to literature among Danish citizens.
Denmark Eliminates Book Tax to Counteract Declining Literacy Rates
Denmark Eliminates Book Tax to Counteract Declining Literacy Rates
In a bold move, Denmark aims to reverse a troubling trend in reading among its youth by abolishing its sales tax on books.
The Danish government has made a significant announcement to abolish its 25% sales tax on books, a high rate among the world's similar taxes, in an attempt to address what officials are calling a "reading crisis." Culture Minister Jacob Engel-Schmidt emphasized that this step is pivotal for encouraging book sales and boosting reading culture throughout the nation, stating he hopes this measure will ultimately lead to more books populating shelves across the country. The financial implications are notable, with the tax removal expecting to cost the government approximately 330 million kroner (around $50 million or £38 million) each year.
Recent data from the OECD highlights concerning trends, revealing that 25% of Danish 15-year-olds lack the ability to comprehend basic text. Engel-Schmidt lamented the spread of this reading crisis in recent years and expressed pride in the government's decision to abolish the tax. He argued for more investments in Danish culture and literature, essential for fostering a reading society.
Comparatively, neighboring countries such as Finland, Sweden, and Norway impose far lower VAT rates on books—14%, 6%, and 0%, respectively—while the UK also maintains a VAT exemption on books. Mads Rosendahl Thomsen, vice-chair of a governmental working group focused on literature, addressed the alarming statistics from OECD, underscoring the detrimental impact of distractions on young people's reading habits.
Though Thomsen acknowledged the VAT removal as a beneficial gesture toward improving reading accessibility, he also clarified that it is not a standalone solution. The working group is also exploring strategies for exporting Danish literature, advancing the digital book market, and considering implications for authors' royalties. Administrator and officials hope this comprehensive approach will instill a renewed interest in reading among Denmark's youth.
