News: PA set to lobby for reduced VAT
The Publishers Association is set to collaborate with the Audio Publishers Association and the RNIB this autumn on a new campaign over VAT rates on audio books and e-books. Earlier this year EU finance ministers voted to allow all 27 EU member states to charge 5% VAT on books that have a "physical means of support".
The PA has already met with the Treasury to discuss this issue. The current economic circumstances mean that any proposal which will reduce money in the public coffers is unlikely to be met with a sympathetic ear. But the PA believes that the long term impact on the market could precipitate a net gain for the Treasury as a reduced rate would spur the nascent market to increased growth. There are also potential competition issues at stake – at the moment certain competing products would benefit from zero sales tax if bought from the US.
However, many arguments in support of such a proposal go beyond the purely economic. The boost audiobooks would experience from a reduced rate could have a knock-on effect on the commissioning of works, which would ultimately benefit performers and also consumers, who would gain from greater diversity of choice in the audiobooks market.
Accessibility is also a critically important issue. The fact that blind, partially sighted, dyslexic and other print impaired people are currently financially disadvantaged by VAT rates on the audiobook and ebook technologies upon which they are dependent is contrary to the fundamental principles of equality. Swift action from government to enact the reduced rate for these formats would represent a major step forward for blind, partially sighted, dyslexic and other print disabled people, as well as for other consumers and the industry.