The Czech government’s consideration of moving newspapers from the lowest value-added tax (VAT) rate to the highest, while reducing the VAT rate on magazines, has sparked significant concerns within the industry and wider society. The proposal, which would result in newspapers being taxed at the higher rate of 21% and magazines at a reduced rate of 12%, has been met with criticism from industry insiders who argue that it poses a serious threat to the existence of newspapers in the country.

Finance Minister Zbyněk Stanjura has justified the move by stating that newspapers are not scientific and therefore do not deserve to be taxed at a lower rate. However, critics have pointed out the short-sightedness of this approach, highlighting the potential negative consequences it could have. Libuše Šmuclerová, Chair of the administrative board of the Union of Publishers, has warned that such a change in VAT could trigger a “domino effect,” with the failure of one newspaper potentially leading to the closure of others.

Newspapers serve a crucial role in keeping the public informed and educated, especially in a time when disinformation is widespread. Increasing the cost of newspapers through higher VAT rates may make them less accessible to readers, ultimately resulting in a decline in readership. This, in turn, would further jeopardize the viability of newspapers and their ability to fulfill their important role in society.

Beyond the potential impact on the newspaper industry, the proposal raises concerns about the broader implications for democracy. A free and independent press is vital for holding those in power accountable and ensuring a well-informed citizenry. Increasing VAT on newspapers could be interpreted as an attempt to limit the freedom of the press and undermine democratic principles.

It is important for the government to consider the significant societal value that newspapers provide and the potential consequences of their proposed VAT changes. Supporting the press by maintaining a lower VAT rate would help preserve press freedom, promote informed public discourse, and safeguard the democratic fabric of Czech society

Article by Prague Forum