Denmark Eliminates 25% Sales Tax on Books to Boost Literacy
In a decisive move to counteract what officials describe as an escalating “reading crisis,” Denmark announced it will abolish its 25% sales tax on books—the highest rate in Europe. This policy shift, announced by Culture Minister Jakob Engel-Schmidt on August 20, 2025, aims to make books more affordable and accessible for Danish citizens, thereby encouraging more widespread reading habits.
Addressing a Growing Concern
The government’s decision comes on the heels of alarming findings from the latest Organisation for Economic Co-operation and Development (OECD) education report. According to the report, 24% of Danish 15-year-olds struggle to comprehend simple texts, marking a 4% increase over the past decade. This decline in reading skills represents a significant educational and social challenge that Denmark is eager to confront.
The High Cost of Reading: Denmark’s 25% Tax on Books
Currently, Danish consumers face a steep sales tax on books, unlike many European neighbors such as the United Kingdom, where books are typically exempt from such taxes. Critics have long argued that Denmark’s high levy discourages book purchasing, especially among younger readers and economically disadvantaged groups.
Culture Minister Engel-Schmidt emphasized the urgency: “We need to do all we can to fix this reading crisis that has unfortunately spread in recent years.” Eliminating the 25% tax is expected to lower retail prices and stimulate book sales nationwide.
Economic Impact and Policy Implications
The government projects that this tax cut will reduce annual state revenue from book sales by approximately 330 million kroner ($51 million). However, policymakers and education experts consider it a strategic investment, hoping increased literacy will foster long-term benefits like improved educational outcomes, higher employment rates, and greater social cohesion.
Voices from the Publishing Industry
The Danish publishing sector has been a vocal advocate for removing the tax. In a May report, industry leaders argued that access to physical books is a fundamental cultural right that shouldn’t be hindered by fiscal barriers. Their campaigns highlight concerns that the tax disproportionately affects children and young adults—key demographics for nurturing lifelong reading habits.
Contextualizing Denmark’s Reading Crisis Globally
Denmark’s initiative follows a global trend where nations grapple with declining literacy levels amidst the rise of digital distractions and changes in education. While some countries have prioritized digital literacy, Denmark is doubling down on the importance of traditional reading materials, reflecting a nuanced approach to preserving cultural literacy.
Experts suggest this policy could spark similar debates globally, prompting countries with high book taxes and low literacy rates to reconsider how tax policy intersects with educational priorities.
What Lies Ahead?
As Denmark prepares to roll out this tax reform, key questions remain about its practical impact. Will more affordable books truly motivate reluctant readers? How will libraries, schools, and communities partner to reinforce this push towards reading? These will be crucial measures to watch in assessing the success of this bold intervention.
Editor’s Note
Denmark’s bold step to remove its steep sales tax on books highlights a meaningful recognition that literacy is foundational to personal and societal progress. While forgone tax revenue presents a short-term challenge, the potential long-term dividends in education and cultural engagement could far outweigh costs. This case illustrates how fiscal policy, education, and cultural preservation are deeply intertwined—and invites a broader conversation about the role of government in fostering literacy in the digital age.
