UK Edition
'Illogical' and 'discriminatory' VAT on audiobooks should be scrapped, say authors, publishers and charities
Rishi Sunak is being urged to end the anomaly that ebooks are exempt from VAT but audio books are not despite their growing popularity
VAT on audiobooks is “illogical and discriminatory,” say authors, publishers and charities as the popularity of podcasts sees a boom in listening.
The Publishers’ Association said it was inconsistent for the Chancellor Rishi Sunak to abolish VAT on ebooks but to leave audio books still subject to the tax, penalising those with visual impairments and children who may struggle with printed books.
It comes as research for the association by ComRes based on more than 2,000 people showed a 58 per cent increase in book buyers opting for audio versions, particularly during lockdown.
Book buyers cited the benefits of relaxation (29 per cent), entertainment (25 per cent) and mental health and wellbeing (17 per cent).
Nearly one in four children were also listening to more audiobooks, again primarily during lockdown, according to the National Literacy Trust, which said it boosted their literacy and understanding of books.
The demand for audiobooks has been fuelled by the growing popularity of podcasts with one in eight people - or 7.1 million of the population - now listening to them, a rise of 24 per cent in a year, according to the watchdog Ofcom.
Stephen Lotinga, Chief Executive of the Publishers Association, said: “The Chancellor has already acknowledged that digital books should not be taxed and the removal of VAT on audiobooks would be the final step in bringing our archaic taxation of digital books into the 21st Century.”
The association pointed out that sales of audiobooks amounted to just £69m of the total £653m of e-publication sales in 2018. This would mean just an extra 10 per cent added to the cost of the VAT exemption for ebooks, which the Government has already agreed.
Cressida Cowell, Waterstones Children’s Laureate, said: ‘The Chancellor’s removal of the tax on ebooks was a fantastic way to champion kids’ reading, especially during lockdown, and a massive step forward to make books available to every child.
“Audiobooks are another crucial part of the effort to ensure every child can discover the book that makes them a reader. We know that children who read are happier and healthier: every child needs to be able to read books in a format they find accessible.”
James Bartlett, Reading Services Manager at the RNIB, said: “We know how important audiobooks are in allowing people to continue enjoying reading after a diagnosis of sight loss, and it’s important that people can access the books they want to read in the format they want to read them.
“We are calling on the Chancellor to Axe the Reading Tax on audiobooks as well to make reading truly accessible to all.”