As part of the consolidation package, the government proposed to move newspapers from a reduced to the basic value added tax rate, i.e. from 10 to 21 percent. In doing so, the Czech Republic took a European lead: in no other EU member country are newspapers available at a basic rate. The Union of Publishers has already warned the government that such a move could be liquidating for part of the media. Culture Minister Martin Baxa (ODS) rejects this.
When compiling the consolidation package, did you know that the Czech Republic will have printed media as the only EU country in the basic and highest VAT rate?
No doubt the government considered this when putting together the package.
Why is it desirable that the newspaper be moved to a higher rate?
The government’s decision that the vast majority of things will be at the basic rate and some at a reduced rate has turned out this way. From this consideration, it emerged that magazines – bearing in mind that, for example, scientific magazines certainly deserve support – will be included in the reduced rate. In the case of books, which I consider extraordinary because of the promotion of reading among all sections of the population, a zero rate was even decided.
Was it part of the government coalition’s considerations to “flood” Andrej Babiš (ANO), who is your main political competitor and at the same time the owner of print media?
The government only made decisions based on the fact that two rates were set, and mainly for social, health and a few other reasons, some things will be included in the reduced one. Therefore, in the segment that concerns me as the Minister of Culture, it was decided that magazines will be included in the reduced one and the others will be in the basic value added tax rate.
Why did you decide to limit the plurality of media? Due to the increase in costs for the newspaper, it is likely to close. The Union of Publishers has already warned the government against this.
So far, I have not registered that there is any consideration of closing the print media. The decision is quite recent. You are based on the consideration that, simultaneously with the move to the basic rate, there will be a reduction in the plurality of opinions. It is, of course, legitimate to think so. As the Minister of Culture, I say that a zero rate on books is an extraordinary thing to support education and reading literacy.
Why do you keep mentioning books? After all, they do not fulfill the same role as newspapers, i.e. to be the watchdog of democracy and control the government.
As for the watchdog of democracy, magazines undoubtedly play such a role as well. Mainly, I don’t think there’s a universal argument that says leaving newspapers at the base rate and books at zero is how the government approaches freedom of speech, pluralism in the public space, and so on.
In Brussels on Tuesday, you and the other ministers of culture discussed the draft of the EU law for the support and protection of the media (EMFA), which seeks to preserve their plurality. Isn’t increasing VAT on printed media in the Czech Republic against the spirit of this proposal? The European Commission has also repeatedly recommended keeping newspapers at a reduced rate.
The European proposal that we discussed is about media control, surveillance and so on. I don’t see the connection there with our decision on the value added tax rate.
