Slovak is set to increase VAT on books
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Loading... - Faith Tyler
- 20 Sep 2024
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The Slovak government has faced widespread criticism following its announcement to increase the VAT on books from 10% to 23%, based on an analysis suggesting that books are mostly bought by wealthier individuals. This move, part of a broader consolidation package aimed at addressing Slovakia's budget deficit, would place Slovakia among the EU countries with the highest VAT on books, behind only Denmark (25%).
Finance Minister Ladislav Kamenický defended the decision by referencing the analysis, but his remarks sparked backlash from the Slovak Publishers and Booksellers Association, political opposition, and university students. The association argued that books are primarily purchased by the middle class, and even by pensioners and people with lower incomes. They warned that increasing VAT on books would lead to fewer books being published, purchased, and read, ultimately impacting both commercial and Slovak original works.
Kamenický later backtracked, claiming his comments were misinterpreted and emphasizing his commitment to public education. He also proposed reducing the VAT on textbooks to 5% to promote learning.
The VAT increase is part of a 17-point package introduced by the Robert Fico-led government to address Slovakia’s budget deficit, which is projected to reach 6% of GDP in 2024. The government aims to reduce this deficit to 4.7% next year, mainly by increasing VAT across various sectors.
Amid public outrage, Interior Minister Matúš Šutaj Eštok announced that the government would review the proposed tax hike on books, acknowledging the concerns it had caused.
