Magazines Ireland has asked Minister for Finance Michael Noonan to put a 0% VAT rate on magazines in Budget 2016, which is set to be announced in October.
Chairman of Magazines Ireland, Rebecca Markey explained that while the recession has impacted on all areas of the economy, the magazine sector has been disproportionately affected, while facing increased competition from other jurisdictions.
“The proximity of the UK market with its plethora of titles flooding the Irish magazine market provides an ongoing threat to the Irish magazine sector," she said.
"Many of our European neighbours enjoy more attractive rates of VAT on magazines. Our nearest neighbour, the UK, enjoys a 0% VAT rate giving them significant advantages over indigenous Irish publishers."
She also cited increases in the entire cost base of running a magazine, including for essentials like paper, printing and postage, as further damaging the Irish industry.
The association said that reducing the VAT on magazines from 9% to 0% would be a positive step for the industry, and would reflect the support of Government and policy makers for the sector.
“It is our view that reduced VAT rates for printed editions would help to ease consumer access to the press and contribute greatly to public policy goals, while helping to guarantee a strong independent and vibrant press sector,” Markey commented.
“Over 750 people are directly employed in the industry with a further 2,874 jobs such as freelance journalists, photographers and models, reliant on the sector.” [Photo courtesy of Dave Crosby, 2012]
© 2015 - Checkout Magazine by Jenny Whelan.