Finance ministry against lowering VAT on books, newspapers
The Ministry of Finance does not support lowering VAT on books, magazines and newspapers as proposed by the Association of Publishers.
The proposal would have lowered the current 9 percent VAT rate to 5 percent. The association suggested the reduction to help manage rising costs of raw materials, printing chemicals and electricity.
Chairman Mart Jagomägi said: "In many European countries, the value of reading and writing culture is reflected in taxation. In almost all EU countries, books are subject to a reduced VAT rate, and in Ireland, Norway and the United Kingdom, for example, books are not subject to VAT at all."
Minister of Finance Keit Pentus-Rosimannus (Reform) wrote in reply that Estonia already applies a reduced VAT rate to these items and the ministry does not support an additional reduction.
It was also suggested the Ministry of Culture could establish support measures for the industry in the coming years.
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Editor: Helen Wright