News / 22.04.2016

UJF: cut in digital content VAT would boost media

UJF head of advocacy Petri Savolainen says that a reduction of VAT envisaged by draft change to the tax rule by the EU Commission would ease the situation facing the press, where high taxation costs have restricted the availability of online media.

Savolainen believes that optimally the reform would be carried out in Finland very rapidly.

“The state can boost democracy and freedom of expression using tax relief on journalistic content.”

In early April, the EU Commission published an action plan aimed at modernising VAT in the EU. The Commission sees this as “the first step towards a single EU VAT area which is equipped to tackle fraud, to support business and help the digital economy and e-commerce.”

The action plan gives scope for reducing VAT on digital content, including tablets and e-books. At present, VAT on digital content is 24 per cent, while that on papers is 10 per cent.

In recent years, public broadcasting has been seen as a threat to commercial media. Savolainen says that the point is not to change this by constraining the public broadcaster, but that by reducing VAT on digital content would create a more level playing field.

“Politicians have responded sympathetically to the issue. The obstacle is seen to be the EU restrictions, which the reform would eliminate.”

 According to the Commission, the action plan aims in part to “update the framework for VAT rates and set out options to grant Member States greater flexibility in setting them.” This would allow for reducing VAT on digital content.

“If the reform comes as a separate regulation this year, why shouldn’t it be put into effect in Finland already at the beginning of next year?” says Savolainen.


See also

All news

UJF condemns the vandalism directed at the Kankaanpään Seutu newspaper

Over the weekend, a window of the local paper Kankaanpään Seutu in the western Finnish region of Satakunta was smashed with a brick, and the tyres on all of the newsroom’s cars were slashed, causing damage to the vehicles. The police are investigating the incident. “Harassment and vandalism of this kind targeting the media are a serious threat to media freedom,” says UJF President Marjaana Varmavuori.

The Nordic journalists’ unions are deeply concerned by the announcement that STT may close down its news operations

Statement by the Nordic Journalists’ Unions: The possible loss of Finland’s national news agency would be a serious blow to media pluralism, access to trustworthy information and democratic resilience.

UJF: “Winding down STT is truly shocking news given the current security situation”

The Finnish News Agency STT has today, 30 September, announced that it may wind down its news and photo operations. The company has stated that it is starting restructuring negotiations, which could involve an end to the agency’s current operations on 31 March and the dismissal of 95 employees.