Remove VAT - protect future of Irish journalism

The Government is being called on to protect the future of independent journalism in Ireland by removing VAT for print and online newspapers in the next Budget.

The campaign for zero VAT has been backed by Local Ireland, the promotional brand of the Regional Newspapers and Printers Association of Ireland (RNPAI) and NewsBrands Ireland, who say journalism is under threat due to: 

The growing power of the big tech platforms is disrupting journalism worldwide

New digital advertising models have put enormous pressure on local and national media

The growth of disinformation online means trusted, professional sources of news are more vital than ever and key to democracy itself

The new EU VAT Directive means the Irish Government now has the power to remove VAT on print and online newspapers.

Introducing a 0% VAT rate in Budget 2023 will provide crucial support to journalism and news publishers, those behind the campaign say. 

Other European countries support journalism with zero or lower rate VAT. Ireland’s VAT rate for news publishers is 9%. In the UK it is zero.

"Doing nothing is not an option," said the groups behind the campaign. "The Government needs to act now."

VITAL

Local newspapers are vital to their communities and provide factual sources to inform views and policy decisions. Quality, professional journalism is essential for a healthy democracy and supports the wider news eco-system for broadcasters and digital publishers.

Without newspapers and their digital content, many important stories would not be told.

Irish people traditionally love news - and the figures bear this out: 82% of the population read a print or digital news title every week (Source: Kantar TGI 2022)

However, journalism faces challenges from the cost of living crisis, the growing commercial power of tech platforms, the legacy of the pandemic which hit advertising and circulation and the soaring costs of newsprint, which has increased 140% over the last 18 months.

SECURE FUTURE

Zero VAT would allow Irish news publishers to help secure their future by investing in the business of journalism, giving greater value to readers and preserving jobs.

News publishers need to invest in digital transition. Ending VAT would help support their transformation to competitive online models.

A detailed submission was made to the Department of Finance before the summer recess. The measure to help national and local newspapers would realise €18.5 million for the Irish media sector.