Magazines Ireland, the association of Irish magazine publishers, has asked the Minister for Finance Mr Michael Noonan (pictured) to reduce the VAT rate on magazines to 0% in Budget 2016, which will be announced in October.
“Whilst recognising that the recession has impacted on virtually all elements of the economy, the magazine sector has suffered disproportionately with increased competition from other jurisdictions,” said Rebecca Markey, Chairman, Magazines Ireland. "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. 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.
“Furthermore,” Ms. Markey added, "in the last few years our members have been hit with huge increases across the entire cost base including paper, printing, distribution and postage.”
The association said that reducing the VAT on magazines to 0% would be a positive move for the industry and would reflect the emphasis and support of Government and policy makers towards the sector.
“There is a benefit for society as a whole. 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. 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.
"A zero VAT rate would help to sustain an industry under threat, protect employment, encourage more people to read magazines, support local communities and assist in improving education and literacy levels. We urge the Minister to address this issue and to reduce the VAT rate on magazines to 0% on Budget Day.”