NewsBrands Ireland, the representative body for Ireland’s national news publishers, has welcome the announcement by the Minister for Finance Paschal Donohoe that VAT is be abolished on print and digital newspapers.
At 9%, Ireland has one of the highest rates of tax on newspapers in Europe, and NewsBrands Ireland has long campaigned on the issue citing it as an unjust tax on information, learning and democracy.
Twenty two European countries including Denmark, the UK, Belgium, Norway, Austria and France, have lower rates of VAT on newspapers, as well as providing other direct and indirect supports for journalism.
Colm O’Reilly, chairman of Newsbrands Ireland and COO of the Business Post Group, said: “Irish people value trusted journalism, and this is borne out in research which shows that 82% read a print or digital newspaper every week.
“The news publishing industry is future focused and this VAT reduction will provide our sector with the financial leverage to continue our investment in the transition to digital and investment required to ensure citizens have continued access to fact-checked, trusted journalism.”
Ann Marie Lenihan, CEO of NewsBrands Ireland, thanked the government for “recognising the value of newspaper journalism in society and democracy”.
She added: “NewsBrands Ireland will continue to campaign for journalism and the challenges it faces including the urgent reform of Ireland’s draconian defamation laws and addressing the dominance of tech platforms in the digital advertising market.”
Welcoming the decision, Paul Henderson, CEO of DMG Media, stated: “Engaging audiences through great content is at the very heart of what we do in the Irish publishing industry and today Minister Donohoe and the Government acknowledged this by removing VAT on newspapers.
“The Minister called out the important work done for our society through a free and independent media sector. This is an important move which our industry representative body NewsBrands led by Anne Marie Lenehan has campaigned on for decades.”
Local Ireland, the association representing 32 weekly paid-for newspapers around the country, also welcomed the decision.
President of Local Ireland Declan McGuire said: “This is a very important move for news publishers. Zero VAT will allow local newspapers around Ireland to invest in journalism and in the transition to new digital business models.
“News publishers have faced a series of major challenges over recent years, most recently the huge increases in the cost of newsprint. This move will help support jobs in the industry and sustain the quality of our service to readers.
“We very much appreciate this endorsement by government for the valuable role we play in our communities and the public service content we provide.
"I would like to thank the Minister for Finance and the Minister for Public Expenditure and all the ministers, TDs and senators from across the political spectrum who have given their support to our campaign to end VAT on journalism.”
In July 2022, the Future of Media Commission recommended that newspapers should be zero-rated for VAT.
Executive Director of Local Ireland Bob Hughes commented: “Along with our national colleagues represented by NewsBrands Ireland, we play a vital role in Ireland’s democracy.
“Today’s decision will protect the future of trusted, professional journalism in Ireland against the tide of global disinformation that threatens to undermine healthy democratic debate and analysis.”