The Danish government has announced a landmark decision to abolish the country’s 25% sales tax on books in a bid to address what officials describe as a worsening “reading crisis” among young people. The move, unveiled by Culture Minister Jacob Engel-Schmidt, is aimed at making books more affordable and accessible, while also encouraging a cultural shift back towards reading in a society where digital distractions have increasingly taken over.
Currently, Denmark imposes one of the highest book taxes in the world, a policy that critics argue has hindered readership and discouraged the purchase of literature, particularly among younger generations. By scrapping the tax, the government hopes to stimulate both book sales and literacy levels, even though the measure is expected to cost the state around 330 million kroner ($50 million, £38 million) annually in lost revenue.
Engel-Schmidt defended the policy shift, noting that Denmark’s youth face significant challenges with reading comprehension. He cited data from the Organisation for Economic Co-operation and Development (OECD), which revealed that one in four Danish 15-year-olds struggles to understand even a simple text. Calling the figures “shocking” and deeply concerning, he argued that urgent measures were needed to reverse the trend. “The reading crisis has unfortunately been spreading in recent years,” Engel-Schmidt said. “I am incredibly proud of this step. Massive money should be spent on investing in the consumption and culture of the Danish people.”
Denmark’s decision also brings it closer in line with its Nordic neighbours, which have already reduced or removed book-related taxes. While Finland applies a 14% VAT on books and Sweden only 6%, Norway has set the rate at 0%. Similarly, in the United Kingdom, books are exempt from value-added tax, a measure that has long been credited with supporting the reading culture there.
Mads Rosendahl Thomsen, vice-chair of the government’s working group on literature, acknowledged that the abolition of VAT alone would not fully solve the problem, but said it was a crucial first step. “At 15, the ability to understand a text is pretty important,” he told the BBC, underlining the OECD findings. He explained that while younger children are still able to catch up with reading skills, teenagers face greater challenges if their abilities remain underdeveloped. Thomsen added that the decline in reading habits has been fuelled by the overwhelming number of distractions available to young people today, making it harder for them to focus on books.
The working group has also been examining broader strategies to support literature, including efforts to promote Danish writing internationally, address the impact of digitalisation on the book market, and ensure fair pay for authors. While experts stress that the abolition of the tax will not singlehandedly eliminate literacy problems, they believe it could help foster a more accessible and book-friendly environment in Denmark, ultimately encouraging a new generation of readers.
