Published August 25, 2025 · The Digital Desk at America Publishers
Denmark Scraps Book Tax to Tackle Reading Crisis and Boost Literacy
Denmark has announced it will abolish its 25% sales tax on books, a move aimed at addressing what officials are calling a “reading crisis.” The tax, among the highest in Europe, has long been criticized for making books less affordable and discouraging reading. With one in four Danish teenagers struggling to understand basic texts, the government says the measure is urgently needed to make reading more accessible. The decision is part of Denmark’s wider cultural policy to strengthen literacy, and it has already sparked discussion about whether other countries should consider similar reforms.
Denmark’s Reading Crisis: A Growing Concern
Denmark’s decision to scrap its book tax comes against the backdrop of mounting concern over falling literacy rates. According to the latest report by the Organization for Economic Co-operation and Development (OECD), 24 percent of Danish 15-year-olds cannot understand a simple text, a four-point increase over the last decade. The findings shocked educators and policymakers, who warned that poor reading skills in adolescence can have lasting consequences for future education and career opportunities.
Experts point to multiple causes for the decline. The rapid growth of digital entertainment and social media has reduced the amount of time young people spend reading, while schools face pressure to address wider curriculum demands. Culture Minister Jakob Engel-Schmidt described the trend as “a reading crisis that has unfortunately spread in recent years,” stressing that literacy is not just an educational issue but a cultural one that affects the entire society.
The sense of urgency is shared by Denmark’s publishing industry, which has long argued that high book prices discourage reading. In a report published earlier this year, publishers urged the government to ensure “guaranteed access to physical books for all Danes, both children and adults.” Scrapping the sales tax is seen as a major step in that direction.
The Tax Angle: Why Books Were So Expensive
Until now, Denmark placed a 25 percent value-added tax (VAT) on books, the highest rate in Europe. The tax applied equally to both physical and digital books, making them significantly more expensive compared to neighboring countries. By contrast, books in the United Kingdom are exempt from VAT altogether, while Sweden and Finland apply reduced rates of 6 percent and 14 percent respectively. Norway, Denmark’s Nordic neighbor, also exempts books from VAT.
For years, Danish publishers and cultural groups argued that this high tax created unnecessary barriers for readers. They noted that when the cost of a book rises, households often prioritize other purchases, especially at a time when families are already balancing rising living expenses. This, they warned, left books treated more like luxury items than essential cultural goods.
The government estimates that removing the tax will cost the state around 330 million kroner ($51 million) annually. Yet Culture Minister Jakob Engel-Schmidt has defended the measure as an investment in the nation’s future, saying, “Massive money should be spent on investing in the consumption and culture of the Danish people.” Supporters believe the reform will lead to a more vibrant book market, where affordability encourages wider readership and stronger engagement with literature.
Global Comparisons: How Other Nations Handle Book Taxes
Denmark’s move places it alongside several European countries that have long recognized the cultural value of keeping books affordable. In the United Kingdom, books have been exempt from value-added tax for decades, reflecting a policy that treats reading as a public good rather than a taxable commodity. Norway also maintains a zero-percent VAT on books, supporting a tradition of strong literacy and widespread access to literature.
Other Nordic countries apply reduced rates rather than full exemptions. Sweden, for instance, charges a 6 percent VAT on books, while Finland applies 14 percent, both significantly lower than Denmark’s previous 25 percent. Advocates for reform argued that Denmark’s higher tax rate not only discouraged reading at home but also undermined its competitiveness in the Nordic publishing market.
The issue is not unique to Scandinavia. Around the world, governments have debated how taxation affects cultural participation. Proponents of reduced or zero VAT on books argue that such measures directly support literacy, education, and democratic access to knowledge. By eliminating its book tax, Denmark is signaling that it considers reading an essential part of national life, a stance many believe could encourage other nations to re-examine their own policies.
Impact on Authors and the Publishing Industry
The removal of Denmark’s book tax is expected to have a significant impact on the country’s publishing sector. For years, authors and publishers warned that high prices limited the reach of their work, reducing both sales and readership. With books now set to become more affordable, industry leaders anticipate a broader audience and a stronger market for Danish literature.
For authors, this shift could translate into more visibility and greater income opportunities. Wider readership means higher demand, not only for established writers but also for emerging voices who often struggle to reach new audiences. In addition, lower prices may encourage schools and libraries to expand their collections, further amplifying the circulation of locally produced literature.
Publishers are also likely to benefit. A tax-free environment creates better conditions for marketing, distribution, and investment in new projects. It could also improve the export potential of Danish books, as increased domestic success often provides a springboard for international recognition.
While the policy will not resolve every challenge facing the industry, such as competition from digital entertainment or the need to adapt to changing reading habits, it represents a structural reform that strengthens the foundation for Denmark’s literary culture.
Readers and Cultural Access
For Danish readers, the decision to abolish the book tax could make a meaningful difference in everyday life. With the 25 percent levy removed, books are expected to become more affordable for households, schools, and libraries. Supporters of the reform argue that this will lower one of the key barriers to reading and help restore books to their place as accessible cultural goods rather than expensive purchases.
The policy has particular importance for young people. Studies show that reading habits formed in childhood often carry into adulthood, shaping both educational outcomes and lifelong learning. By making books easier to obtain, the government hopes to encourage children and teenagers to spend more time reading, even in an era where digital distractions compete for their attention.
Libraries and schools also stand to benefit. Lower book prices could enable institutions to refresh their collections more frequently, ensuring that students and communities have access to a wider variety of titles. Advocates believe that such access not only improves literacy but also promotes cultural understanding and critical thinking. While scrapping the tax will not solve every challenge linked to reading habits, it is seen as a practical step toward making literature a more central part of Danish society.
Conclusion
Denmark’s decision to abolish its 25 percent sales tax on books marks a significant cultural shift, aimed at reversing a decline in reading and strengthening literacy across the nation. While the reform will cost the state hundreds of millions of kroner each year, officials and educators believe the long-term benefits of making books more accessible outweigh the financial burden. The move has already drawn international attention, with many observers suggesting it could inspire similar discussions in other countries. Whether this policy alone is enough to resolve Denmark’s “reading crisis” remains to be seen, but it signals a firm recognition that books are vital to education, culture, and society.
Source: The New York Time, BBC News, and The Guardian. For more information, visit below 3 links.