In a bold response to a worrying trend in youth literacy, the Danish government has decided to abolish the 25% sales tax imposed on books. This measure, one of the heftiest in the world, is seen as a crucial step in combating what officials are calling a "reading crisis." Culture Minister Jacob Engel-Schmidt expressed optimism that this tax removal will lead to increased book sales and engagement with literature across Denmark.
The financial implications of this decision are significant, with estimates anticipating an annual cost of approximately 330 million kroner (around $50 million, or £38 million) to the state's budget. Recent data from the OECD highlights a concerning statistic: one in four Danish 15-year-olds struggles to comprehend simple text, indicating a pressing need for intervention.
Engel-Schmidt emphasized during the announcement, "The reading crisis has unfortunately been spreading in recent years," signaling a commitment to prioritize investments in cultural consumption among Danish citizens. He noted that Denmark’s VAT rate parallels that of Finland, Sweden, and Norway, where the tax on books is considerably lower—at 14%, 6%, and 0%, respectively. In contrast, the UK has eliminated VAT on books entirely.
Experts have cited declining reading skills and comprehension levels among teenagers as problems that need addressing. Mads Rosendahl Thomsen, vice-chairman of the government’s literature working group, pointed out that while younger children have the potential to enhance their reading skills, the ability to understand texts becomes critically important by age 15. He noted that the data revealing the levels of struggle with reading among the youth are "pretty shocking," attributing this trend to the plethora of distractions available in today's digital age.
While the removal of the VAT may not resolve all literacy challenges, Thomsen argues it will render books more accessible, thereby encouraging reading among the youth. Furthermore, the government's working group is also exploring ways to promote Danish literature abroad, the digitization of the book market, and the implications for authors’ earnings, signaling a broader commitment to revitalizing the literary landscape in Denmark.
