Removing VAT will help safeguard the newspaper industry

The Budget Day announcement that VAT will be removed from newspapers has been welcomed by the Fine Gael politicians who have been campaigning on this issue for some time.

Galway East TD Ciaran Cannon said, “Fine Gael has strongly supported the call for zero Vat on newspapers and in a welcome move today, Minister Paschal Donohoe announced that the VAT rate will be reduced from 9% to zero on newspapers and news periodicals from 1^st January 2023.

“This is a really welcome move to protect journalism, to protect the truth, in a world of increasing disinformation.

“Over the last decade we have seen advertising revenues migrating from our print media to digital and all of our newspapers, both national and local, are finding it very difficult to survive. There have been closures, consolidation and job losses in newsrooms across the country.

“In removing VAT from our newspapers we are throwing a vital lifeline to good journalism, to those who are writing our history every day.

“In particular, we are ensuring that our local newspapers, those that bind communities together and give us a sense of identity, will now have the resources to grow their digital presence. This is vital for them if they are to survive.”

Fine Gael Seanad Media spokesperson, Senator Micheál Carrigy said, “The gathering and distribution of trusted news is crucial for Irish society at a local, regional and national level. As a trusted news source, newspapers must be supported and protected.

“The emergence of social media has led to loss of income from traditional sources with consumers not willing to pay as much for digital subscriptions as for the printed copy, and income from advertisers also reduced.

“While there are a number of supports proposed through the Future of Media Commission report, to which Fine Gael made a submission, this move to a zero rate of VAT will help to safeguard the newspaper industry into the future.”