RIGA, Aug. 8 (Xinhua) -- Publishers in Latvia are calling for a tax cut on books which they argue would help maintain stability on the national book market, Renate Punka, chairperson of the Latvian association of book publishers, said on public radio Thursday.
The rate of value added tax (VAT) on books, including electronic books, should be lowered to 5 percent from 12 percent, head of the publishers' association said.
Although the situation on the Latvian book market is currently fairly good and the publishers are feeling certain stability, they are worrying about the inevitable growth of all costs related to publishing and selling books, as well as about the dropping number of books reaching Latvia's bookstores.
The publishers therefore suggest a VAT reduction as a preventive measure aimed at sustaining the existing stability. A lower tax rate would keep prices on books down, allowing book publishers and distributors to spend more on new projects and increase print runs.
According to the publishers' estimates, the proposed VAT cut would reduce Latvia's budget revenue by less than a million euros (1.12 million U.S. dollars), but the money would later return to the economy as salaries and new projects, said Punka.
