Finance ministry against lowering VAT on books, newspapers | News

The proposal would have lowered the current VAT rate from 9% to 5%. The association suggested the reduction to help manage rising costs for raw materials, printing chemicals and electricity.

President Mart Jagomägi said: “In many European countries, the value of the culture of reading and writing is reflected in taxation. In almost all EU countries, books are subject to a rate reduced VAT, and in Ireland, Norway and the UK, for example, books are not subject to VAT at all.”

Finance Minister Keit Pentus-Rosimannus (Reform) wrote in response that Estonia already applies a reduced VAT rate to these items and the ministry does not favor a further reduction.

It was also suggested that the Ministry of Culture could put in place support measures for the industry in the coming years.

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