Tax on audio books ‘illogical and unfair’
MILLIONS of audio and e-book readers are being hit by a 20 per cent stealth tax, say publishers, as they mount a campaign for the UK to follow other European nations and ditch the charge.
Leading authors and the Publishers Association say the one in five people who use digital books are unfairly being hit by a VAT charge whereas printed versions are exempt.
Children’s laureate Cressida Cowell is among the authors who want the “illogical and unfair” tax scrapped or slashed, as has already happened in 18 European nations. Those countries made the move after EU legislation came into force a year ago allowing members states to reduce or do away with VAT on digital publications.
New research by the Publishers Association suggests digital VAT could be stifling the growth of the publishing industry and UK literacy rates as 50 per cent of adults in a new ComRes poll it commissioned said that a cut in the tax would inspire them to buy more books.
It is estimated the VAT charge costs consumers up to £210million a year on total book sales of £3.6billion of which more than £650million are digital.
Stephen Lotinga, chief executive of the association, said: “Families across the UK who receive e-readers this year for Christmas will be stuck with an unfair 20 per cent tax on all books they buy. This is a penalty on people who need or prefer to read digitally.
“The tax system needs to be modernised to remove this barrier to childhood literacy and promote access to books for all. This is why we are calling on the Government to listen to the public and Axe the Reading Tax.”
Ms Cowell said: “I am proud to support the Axe the Reading Tax campaign. I hope the Government sees sense and gets rid of the tax on e-books and audiobooks as soon as it can.
“Taxing reading makes no sense, especially when it is being felt by those with disabilities and children just starting to understand the joy of reading.”
The campaign, which is supported by the RNIB, the charity Listening Books, National Literacy Trust and BookTrust, points out that the tax on e-publications hits public sector bodies like the NHS with a £55million charge.