'Everything's At Stake': This Country Is Making Books Tax Free To Tackle Reading Crisis
Denmark is set to abolish value-added tax (VAT) on books in a bid to encourage more people to read, after warning of a growing 'reading crisis" in the country. At 25%, Denmark currently levies the world's highest tax rate on books- a policy the government says has discouraged reading. Culture Minister Jakob Engel-Schmidt announced that the government will include the measure in its upcoming budget bill. The initiative is expected to cost the state around 330 million kroner (£38 million) annually.
Engel-Schmidt said, 'This is something that I, as minister of culture, have worked for, because I believe that we must put everything at stake if we are to end the reading crisis that has unfortunately been spreading in recent years."
He added, 'I am incredibly proud. It is not every day that one succeeds in convincing colleagues that such massive money should be spent on investing in the consumption and culture of the Danes."
Nordic Comparisons
Other Nordic countries also have standard VAT rates of 25%, but books are exempt. Finland charges 14% VAT on books, Sweden 6% and Norway none at all. Sweden reduced VAT on books in 2001, which led to an increase in sales. Engel-Schmidt said the Danish government wanted to do more than just make books cheaper.
'It is also about getting literature out there," he said, noting that funds have already been allocated to strengthen cooperation between schools and public libraries to help children discover literature.
In 2023, 8.3 million books were sold in Denmark, both in shops and online, according to the national statistics office. With a population of just over six million, the most popular titles were children's picture and activity books, followed by crime, thriller and suspense novels.
Engel-Schmidt also said that the government would closely track whether the measure actually reduces prices for consumers, adding, 'I will of course monitor how prices develop. If it turns out that abolishing VAT only means that publishers' profits grow and prices do not fall, then we must consider whether it was the right thing to do."
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August 20, 2025, 23:30 IST
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