In a bold move to tackle a growing "reading crisis," Denmark has announced the abolition of its 25% Value Added Tax (VAT) on books, one of the highest such taxes globally. The Danish government hopes this initiative will make books more accessible and encourage reading among its citizens. The measure, expected to cost approximately 330 million kroner ($50 million, £38 million) annually, was announced by Culture Minister Jakob Engel-Schmidt.

Engel-Schmidt expressed pride in the decision, stating, "We must put everything at stake if we are to end the reading crisis that has unfortunately been spreading in recent years." He emphasized the need for substantial investment in the consumption and culture of the Danish people.

According to OECD data, a significant portion of Danish teenagers, about 25%, struggle with reading comprehension. Mads Rosendahl Thomsen, vice-chair of the government's working group on literature, described these findings as "pretty shocking." He noted that while younger children can improve their reading skills, comprehension becomes crucial by age 15.

Comparative VAT Rates in Nordic Countries

Denmark's decision aligns with practices in other Nordic countries, where VAT on books is significantly lower. In Finland, the VAT is 14%, in Sweden 6%, and in Norway, books are VAT-free. Sweden's reduction in book VAT in 2001 led to increased book sales, although primarily among existing readers.

Ensuring Consumer Benefits

Engel-Schmidt has pledged to monitor book prices closely following the tax removal. "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," he stated. The government has also allocated funds to enhance cooperation between public libraries and schools, aiming to introduce more children to literature.

In 2023, Denmark, with a population of just over 6 million, saw the sale of 8.3 million books, with children's books and crime novels being the most popular genres.