MEDIA PACKAGE MAY ELIMINATE VAT ON NEWSPAPERS
A COMPREHENSIVE media package, including €6million to start a new media funding scheme, is expected to be announced in tomorrow’s Budget.
It is understood the package will prioritise local and court reporting initially, across local, national print and broadcasting.
A new Media Development Commissioner, one of three under the new Media Commission, to oversee funding and development in the sector will also be selected by November.
Minister for Tourism, Arts and the Media, Catherine Martin is also strongly supportive of reducing VAT for print media to zero. Taoiseach Micheál Martin last week gave his backing for abolishing VAT on newspapers, which is a tax on information.
Speaking in New York, Mr Martin said he is ‘personally positively disposed’ to moving the VAT charged on newspapers toward 0%, saying it is important to protect independent journalism.
It is estimated that the move would cost the taxpayer €18million a year.
The newspaper industry has argued that the current rate of VAT at 9%, is effectively a tax on information, and has been campaigning for the reduction on newspapers in order to sustain the industry.
This is because the VAT rate on print and digital newspapers in Ireland is among the highest in Europe.
Tomorrow’s budget is also expected to include new funding streams to support artist studios and spaces, the Night Time Economy, and ‘Speak Up’ funds for a growing, safe and fair environment in the Arts.
Continued additional tourism funding is also expected to be announced to support overseas marketing of Ireland as a destination.