Danish newspapers fear tax reform

Circulation of free newspapers in Denmark dropped from 2 million in 2006 to 600,000 now. Only three titles, connected to the two main publishers, remain. But Danish publishers are still far from happy.

The government is threatening to end the zero-VAT tax for newspapers. In total Danish newspapers receive €175m in state support and subsidies, the zero VAT is by far the largest part of that. (MediaWatch).

Got that? Yes: €175 million a year and 0% V.A.T. (Normal Danish VAT is 25%.)

Except from that, Danish papers are the most expensive in Europe, while there are also many direct subsidies (see previous post).

According to the publishers in MediaWatch, very soon papers will have to close down when the exemption is ended. JP/Politiken fears that it will have a negative impact on democracy.

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