Taoiseach backs removal of VAT on newspapers

Taoiseach Micheal Martin addressing the 77th UN General Assembly in New York.

Taoiseach Micheál Martin has given his backing for abolishing VAT on newspapers.

Speaking in New York, Mr Martin said he is “personally positively disposed” toward moving newspapers toward zero per cent, saying it is important to protect independent journalism.

It is estimated that the move would cost the taxpayer €18 million a year.

“We will be examining that positively,” he said. “There is a budget next week. We are looking at it and we are positively disposed. We want to do everything we possibly can positively to enable media to survive. Especially the print media, in what is a very difficult environment. So we will be examining that positively,” the Taoiseach said.

While Mr Martin stopped short of confirming the move will be in Tuesday’s budget, his comments are seen as a clear indication that it will be included in Paschal Donohoe’s budget speech.

Mr Martin pointed to the role the print industry played during the Covid-19 and saying the State can play a role in ensuring newspapers survive.

The Government must reduce Vat on newspapers to zero or we will see closures very soon, TDs and Senators have been warned.

National and local newspaper editors and publishers have been campaigning for Vat on newspapers to be reduced to zero in the forthcoming budget amid a cost crisis in the industry.

In a briefing at Leinster House attended by almost 50 TDs and Senators, a joint presentation from NewsBrands (the representative group for national papers, of which the Irish Examiner is a member) and Local Ireland (the group representing local and regional papers) set out the challenges being faced by the industry in the face of unfair competition from online platforms.