Denmark Scraps VAT on Books to Tackle Literacy Crisis 

Denmark aims to scrap a sales tax on books in an effort to get more people reading, after data showed that many young people struggle to understand a simple text, Euronews reported. 

The Danish Value Added Tax (VAT) on books is 25 percent, which makes it one of the highest in the world. 

Culture Minister Jakob Engel-Schmidt said Wednesday that the government plans to propose eliminating the tax on books in its upcoming budget bill, as it believes the high tax could be contributing to a growing “reading crisis,” the Guardian wrote. 

Denmark, which has a population of just over 6 million people, recorded sales of 8.3 million books in shops and online in 2023, according to the national statistics office. 

Meanwhile, a 2023 survey from the Organisation for Economic Co-operation and Development (OECD) showed that one in four Danish 15-year-olds struggle to understand a simple text, which Engel-Schmidt said is “pretty shocking.” Other studies show teenagers’ reading levels are falling, which experts link to shorter attention spans and constant digital distractions. 

Scrapping the tax is expected to cost Denmark more than $50 million a year. 

“I am incredibly proud,” Engel-Schmidt told the Ritzau news agency. “It is not every day that one succeeds in convincing colleagues that such massive money should be spent on investing in the consumption and culture of the Danes.” 

The minister said he will monitor book prices after the proposed VAT cut to see if prices fall, warning that if the tax only boosts publishers’ profits, they will reconsider whether the policy is effective. 

While other Northern countries generally apply a 25 percent VAT on goods, books are often taxed at lower rates. Books are taxed at 14 percent in Finland and 6 percent in Sweden, while in Norway they are tax-exempt. 

Sweden reduced its VAT on books in 2001, which resulted in more sales. However, an analysis revealed that those books were mostly bought by existing readers.