What's Hot?
95th Oscars: ‘Everything Everywhere All at Once’ Leads...
‘Shanty Town’ Star, Chidi Mokeme, Reveals ‘Scar’ Behind...
Aluu Four: Linda Ikeji’s ‘Dark October’ Coming To...
19th AMAA: Organisers Reiterate Call For Entries
How Rema’s ‘Calm Down’ With Selena Gomez Conquered...
19th AMAA: Organisers Reiterate Call For Entries
International tourist arrivals doubled in 2022: UN
Dakar is reclaiming its place as the cultural...
Ijongbon! As Kunle Afolayan Goes On Set Again
Nigerian Artistes Shine As Burna Boy, Davido, Asake,...
The Culture Newspaper
  • Home
  • Arts & Exhibitions
  • Culture & Festivals
    • Culture Africana
    • Culture People
  • Fashion & Lifestyle
    • Music, Movies & More
  • News
    • Travel News
  • Opinion
    • Reviews (The Critics)
  • TCN Literati
  • Tourism & Hospitality
TCN Literati

Government will abolish the 20% ‘reading tax’

by The Culture Newspaper March 18, 2020
by The Culture Newspaper March 18, 2020

The government will abolish the 20% “reading tax” on ebooks and online newspapers from December, although it is unclear whether publishers will pass the full saving on to customers.

Printed books and newspapers have always been zero-rated for VAT but until now their digital equivalents – such as books from Amazon’s Kindle service or online subscriptions to news websites such as the Times or the Guardian – have been subject to the sales tax.

Chancellor, Rishi Sunak, confirmed the change would also impact online magazines and academic journals – which will aid the budgets of university libraries. He said a “world class education will help the next generation thrive and nothing could be more fundamental to that than reading”, estimating the change would cost the Treasury £200m a year in lost revenue by 2025.

Amazon welcomed the decision, saying it would “make reading more accessible to more people”, although any reduction in the cost of ebooks could have a knock-on effect on sales for traditional bookshops.

The decision to zero-rate VAT on the products follows years of lobbying from book publishers and news groups, led by Rupert Murdoch’s News UK, who fought a long legal case that both physical and online newspapers should be treated in the same manner.

British newspaper groups that charge for their content are now set for an unexpected financial boost at a time when the industry is struggling.

Although most do not break down their revenue by subscriber base, making it hard to calculate the exact impact, it is expected to make a material difference to their accounts. The Times has more than 300,000 online-only subscribers and a headline subscription price of £312 a year, meaning it could increase revenue by tens of millions of pounds if it does not pass the 20% tax saving on to customers.

Other news outlets with large numbers of online subscribers, such as the Financial Times, will also see a substantial benefit. A spokesperson for Guardian Media Group, the owner of the Guardian and the Observer, said it would benefit the business: “The abolition of VAT on digital news publications is welcome, recognising the shifting reader habits and commercial changes that news organisations are navigating. For quality news organisations, including the Guardian, who are earning more revenue directly from readers, today’s move is a positive step forward.”

However, it remains unclear how the government will define what counts as an online newspaper or magazine for tax purposes, especially when it comes to other online subscription products that charge for information such as newsletters.

Source: www.theguardian.com

0
FacebookTwitterPinterestLinkedinWhatsappEmail
The Culture Newspaper

previous post
I smoked with Asa…and got the best story of my career (Part 2)
next post
Dubai Tourism targets 10 million visitors from Nigeria in 2020

You may also like

Prince Harry Signed a 4-Book Deal Before Releasing...

January 12, 2023

Guess What’s Better Than a Book Blurb

December 31, 2022

USA Today suspends book bestseller list; Bookforum closing...

December 22, 2022

Chimamanda Ngozi Adichie: Author warns about ‘epidemic of...

November 30, 2022

Introduction to the Epistles of Anthony Kila

November 22, 2022

Oyegbile, Asika, Bula, Others Shortlisted For ANA Litrrary...

October 24, 2022

Romeo Oriogun’s ‘Nomad’ Wins 2022 NLNG Prize For...

October 18, 2022

Writers Urge Members To Donate Books Ahead Of...

October 11, 2022

France’s Ernaux, who long scrutinised self, wins Nobel...

October 7, 2022

Bridge Across The Seas: When words paddle their...

September 5, 2022

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

Recent Posts

  • 95th Oscars: ‘Everything Everywhere All at Once’ Leads As Academy Unveils Full List Of Nominees [FULL LIST]
  • ‘Shanty Town’ Star, Chidi Mokeme, Reveals ‘Scar’ Behind His Five-Year Break From Acting
  • Aluu Four: Linda Ikeji’s ‘Dark October’ Coming To Netflix This February
  • 19th AMAA: Organisers Reiterate Call For Entries
  • How Rema’s ‘Calm Down’ With Selena Gomez Conquered the Global Charts

Sponsored

Recent Posts

  • 95th Oscars: ‘Everything Everywhere All at Once’ Leads As Academy Unveils Full List Of Nominees [FULL LIST]

    January 24, 2023
  • ‘Shanty Town’ Star, Chidi Mokeme, Reveals ‘Scar’ Behind His Five-Year Break From Acting

    January 24, 2023
  • Aluu Four: Linda Ikeji’s ‘Dark October’ Coming To Netflix This February

    January 24, 2023

Categories

  • Arts & Exhibitions
  • Culture & Festivals
  • Culture Africana
  • Culture People
  • Fashion & Lifestyle
  • Food
  • Music, Movies & More
  • News
  • Opinion
  • Photo News
  • Reviews (The Critics)
  • TCN Interview
  • TCN Literati
  • Tourism & Hospitality
  • Travel News
  • Travel Trends
  • Travelogue
  • What's Hot?
  • World Culture

Connect with us

Connect with us
  • Facebook
  • Twitter
  • Instagram
  • Youtube
  • About Us
  • Advertise With Us
  • Privacy Policy
  • Contact Us

@2019 - The Culture Newspaper. All Right Reserved. Designed and Developed by Zero-One

The Culture Newspaper
  • Home
  • Arts & Exhibitions
  • Culture & Festivals
    • Culture Africana
    • Culture People
  • Fashion & Lifestyle
    • Music, Movies & More
  • News
    • Travel News
  • Opinion
    • Reviews (The Critics)
  • TCN Literati
  • Tourism & Hospitality