Increasing the VAT on books, daily and periodicals from seven to 15 percent would mean the cessation of the work of small publishing houses, a reduction in the production of contemporary Montenegrin literature, and the domestic printed media would be brought to the brink of extinction.
This is what representatives of publishing houses and associations, as well as directors of leading print media, told "Vijesta" on the occasion of the publication of the draft fiscal strategy in which the tax on books and the press will be increased from the current seven to 15 percent.
President of the Society of Montenegrin Publishers, prof. Ph.D Vladimir Vojinović, he told "Vijesti" that the VAT for books or press can be increased in Montenegro "only by someone who either does not know the situation in Montenegrin publishing or wants to completely shut down the book market, i.e. the sale of copies of printed media".
"There is no third explanation for the move by the Government of Montenegro to make it difficult for small publishers and print media. In Montenegro, the sale of books from the sphere of contemporary Montenegrin literature, for example, as well as the sale of copies of printed magazines, is at a very low level. Even if VAT is increased to 21 percent, instead of the planned 15 percent, it will not significantly help the failing Montenegrin budget. However, if it is not enough to improve the economic situation in the country, this planned increase is more than enough to prevent some 'small publishers' from continuing their work. At the same time, this plan will make it difficult to place and sell newspapers. The only conclusion that can be drawn from this whole bizarre circumstance is that someone does not like the fact that there are Montenegrin publishers who affirm the reach of local culture and that the fact that independent print media continue to function in Montenegro does not correspond to the same. Before making this move, the Government should ask themselves - who in the history of our civilization was against books and free journalism?" said Vojinović.
Threatened print media and their employees
Executive director of "Daily Press", which publishes the independent newspaper "Vijesti", Marijana Kadić Bojanić she said that "if this proposal is really adopted, it would be another in a series of business barriers for the media".
"Everywhere in the world, democratic governments are trying to help the survival of print media in order to preserve pluralism and the jobs of media professionals. Here, the situation is reversed. What we have seen in recent months leads to the suppression of media pluralism and the survival of only those media that are financed from the state budget", said Kadić Bojanić.
She pointed out that by increasing the VAT on newspapers and books, "unfortunately, the state cannot achieve a significant benefit for the budget".
"At the same time, media pluralism will be threatened. Not to mention media employees and owners. Therefore, this problem should be dealt with by the Ministry of Culture and Media, which in the draft of the media strategy provided for a zero rate of VAT on press and books, as is the case in many EU countries, and as tax legislation has come to the fore, we expect the department to the person in charge of media and culture should do the work that is in the interest of the citizens", said Kadić Bojanić.
Acting Director of "Dana" Mladen Milutinović He said to "Vijesta" that "we did not expect that the Draft Fiscal Strategy would make business conditions for print media even more difficult".
"This measure will, without a doubt, contribute to the reduction of circulation, which is already trending downward. Just two years ago, the Draft Media Strategy provided for the exemption of VAT for the press, as one of the incentive measures that exist in neighboring countries and the EU," said Milutinović.
Before they make this move, the government should ask themselves - who in the history of our civilization was against books and free journalism?", said Vladimir Vojinović.
He said that the representatives of the print media "not so long ago informed the officials of the Government of Montenegro and the relevant ministry about all the difficulties that the print media are facing in the last few years".
"By ignoring this proposal and adopting the measures of the Fiscal Strategy, the future of the print media, whose word is one of the pillars of democracy and freedom of expression, is uncertain," said Milutinović.
Appeal from publishers, librarians and writers
Yesterday, the Association of Publishers and Booksellers of Montenegro appealed to the Government not to adopt the announced proposal to increase the VAT on books because it "would undoubtedly have far-reaching negative consequences on the culture of reading, education and the availability of books in our country".
Their appeal was supported by the Association of Librarians of Montenegro, the Professional Association of Writers of Montenegro, CID, Nova knjiga, Pinta, Juing - Pčelica, Obodsko slovo, Unireks, Svetigora, VBR grafika, Matica srpska - a society of members in Montenegro, the SNV literary cooperative, Comic Club Mister No, Kultura plus, Pegaz, JU Ratković's poetry evenings...
"At a time when the book is already threatened by the growing use of mobile phones and digital media, an additional increase in VAT would reduce the presence of books in their traditional form, and books are essential for the preservation of culture and education. "Montenegro, as a small country with a rich but vulnerable cultural heritage, should invest efforts in the promotion of reading and the availability of books, and not introduce measures that will make them less accessible", it was stated in the announcement of this association whose president Radomir Uljarević.
They state that in most EU countries books are taxed at the lowest rate of VAT between five and seven percent, and that in Great Britain and a large number of other countries a zero rate is applied.
"European countries are striving to further reduce or abolish VAT on books in order to support culture and education, encouraging reading, education and cultural development. It is a form of helping publishers and bookstores to maintain competitiveness and to encourage publishing, which contributes to the development of the cultural industry. Montenegro, with its small but valuable cultural scene, should aspire to these positive examples and support reading and education through low tax rates on books. At this stage of adopting European values, after receiving IBARA, it would be natural to worry about the harmonization of tax policy with European practices", stated the Association of Publishers and Booksellers.
The European Parliament called for a zero rate
They say that the total amount that could be collected by increasing the VAT on books would be negligible compared to the damage that this increase would cause.
"In the context of the entire budget of Montenegro, this amount is minor, while the damage to culture and education is enormous. We also remind you of the Resolution of the European Parliament of September 14, 2023 on the future of the European book sector (2023/2053(INI)) in which the EP, among other things ... (55) calls for a zero VAT rate for books in member states, without regardless of their format or the way they are accessed, in order to support a knowledge-based economy and encourage reading and promote its lifelong benefits. The Association of Publishers and Booksellers of Montenegro supports the long-standing struggle of the International Publishers Association (IPA International Publishers Association), as well as the Federation of European Publishers (Federation of European Publishers) for zero taxation of books in all forms", the announcement stated.
The draft strategy proposes an increase in the VAT tax rate from seven to 15 percent on copyrights and services in the fields of education, literature and art, which also increases costs for publishers and ultimately increases the retail price of books.
Reading books in Montenegro is already under threat
Director of the publishing house "Nova knjiga" Predrag Uljarević he told "Vijesti" that publishing in Montenegro is in a sensitive and complex situation.
"And any possible increase in costs could further threaten this activity. As a publishing house 'Nova knjiga', in that case we would be forced to significantly reduce our own production, as well as the purchase of books from other publishers", said Uljarević.
He points out that publishing, in addition to business, also has a cultural component, that is, a mission. According to him, any increase in book prices would reduce their availability.
"Which would be especially harmful at a time when reading is already under threat, especially among younger generations. As a publishing house that also operates a large number of bookstores, we believe that publishing should be additionally supported. This is especially important in smaller cultures and countries. In Great Britain, VAT on books is zero percent, and in many countries of the European Union, books are either completely exempt from tax or a reduced VAT rate is applied," said Uljarević.
Bonus video:
