The government presented a new tax package, which includes a significant VAT increase on printed newspapers, a move harshly criticised by Czech publishers who say it will kill off their businesses.
The VAT on printed newspapers will increase from 10% to 21%, according to the austerity measures proposed on Thursday. On the other hand, printed magazines will have a reduced rate of 12%.
“Journals are socially important; that is why we include them in the lower VAT rate. We know scientific journals, we do not know scientific newspapers,” Czech Finance Minister Zbyněk Stanjura (ODS, ECR) said during the press conference to explain the different VAT rates for magazines and newspapers.
The Czech government’s decision sparked harsh criticism from local publishers.
“The proposal to increase VAT on newspapers from 10% to 21% looks like an effort to kill newspaper publishing in the Czech Republic. In addition to the increase in energy prices and paper prices, a 100% increase in VAT may be the final nail in the coffin of one media type in the Czech Republic,” Libuše Šmuclerová, Chairwoman of the Czech Publishers’ Association board, said.
She also emphasised that VAT in other European countries is much lower regarding printed media. In Germany, the VAT is 7%, Poland has 8%, Italy and Spain 4%, and France 2.1%.
“The government may be the gravedigger of the democratic press in the Czech Republic. Newspapers were and are an anchor for readers to find their way around the misinformation on the internet. The government can take this anchor away from the people by increasing VAT,” Šmuclerová added.
Thursday’s decision contradicts previous statements made by Czech Prime Minister Petr Fiala (ODS, ECR). In February 2023, Fiala said in a debate organised by Deník that he did not want newspapers to be taxed more as they play an essential role in society.
(Aneta Zachová | EURACTIV.cz)
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