IPA believes that all industry sectors, including publishing and bookselling, should participate in the administrative procedure of VAT taxation. A zero rate provides the most effective way of supporting the entire publishing chain, from author through to bookshops and libraries.
In the light of the great success that a zero rate has shown in the countries in which it has been introduced (UK, Norway, Korea, Mexico, Thailand etc.), we consider this to be the optimal solution. This is why since its 24th Congress in New Delhi in 1992, IPA has been calling upon Governments and other bodies with responsibilities for taxation to apply a zero rate VAT on books and other publications.
Our arguments for a zero-rate VAT on books are as follows:
- A zero-rate VAT on books has a proven, direct impact on the price paid by the consumer for a given book, and hence on book sales. It is therefore one of the most effective ways of promoting a book culture, literacy and reading. With a 0 rate VAT on books, more people will read more books;
- A zero-rate VAT on books guarantees stronger creativity and knowledge;
- A zero-rate VAT on books secures a stronger national publishing industry with more employment and economically viable small and medium-sized publishing companies.