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Denmark Eliminates Book Tax to Address Declining Literacy Rates

Danish government eradicates 25% book sales tax in response to alarming youth literacy challenges.

Source: bbc.co.uk1 min read
Denmark Eliminates Book Tax to Address Declining Literacy Rates
Image via bbc.co.uk

In brief

Denmark's recent decision to abolish a 25% sales tax on books aims to tackle a growing concern about literacy among its youth, following reports that a significant portion of Danish adolescents are struggling with reading comprehension.

The Danish government has taken a significant step to combat what has been labeled a "reading crisis" by eliminating a 25% sales tax on books, one of the highest in the world. Culture Minister Jacob Engel-Schmidt championed this initiative, expressing hope that it would encourage increased book sales among the populace. The tax removal is estimated to cost the government about 330 million kroner ($50 million, £38 million) annually.Statistics from the OECD reveal that approximately 25% of 15-year-olds in Denmark are unable to comprehend basic texts, prompting Engel-Schmidt's comments on the worsening reading crisis. He conveyed pride in this initiative, underlining the necessity of substantial investments in reading and cultural consumption for Danish society. In comparison, neighboring countries with similar VAT rates, such as Finland, Sweden, and Norway, all have lower sales taxes on books at 14%, 6%, and 0%, respectively, while the UK also exempts books from VAT. Mads Rosendahl Thomsen, the vice-chair of the governmental literature working group, noted the concerning trends indicated by survey results, pointing to distractions and an overwhelming number of entertainment options available to youths as contributing factors to their declining reading skills. While acknowledging that abolishing the VAT on books is not a panacea, he affirmed that it would enhance accessibility and potentially stimulate interest in reading among the youth.This governmental working group is also exploring avenues to promote Danish literature internationally, as well as the impact of digitalization on the book market and authors' compensation.

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