Why our TDs must insist on removing VAT on journalism

Government no longer has an excuse to say ‘no’

Not for the first time, the Irish newspaper sector has escalated its long-running campaign to have the nine per cent VAT removed from print and online journalism.

Previous efforts were unsuccessful.

But this time it cannot be overlooked, such is the crisis within the sector.

Local Ireland, which represents the provincial newspaper sector, will be making a presentation at Leinster House yesterday ahead of the budget later this month and our legislators must start insisting on action.

Here are some of the issues threatening the very fabric of journalism.

The growing power of the big tech. platforms, most notably Facebook and Twitter, is disrupting journalism worldwide.

New digital advertising models have put enormous pressure on local and national media while the growth of disinformation online means trusted, professional sources of news are more vital than ever and key to democracy itself.

The new EU VAT directive means the Irish government now has the power to remove VAT on print and online newspapers. They used that factor as an excuse for their inability to do so before.

It goes without saying the introduction of a zero VAT rate in Budget 2023 will provide crucial support to journalism and news publishers.

Unlike Ireland, other European countries support journalism with zero, or lower rate than 9% VAT. Ireland’s VAT rate for news publishers is 9%. In the UK, it is zero.

Doing nothing is not an option any longer. The Irish government needs to act now, despite the other demands being placed on it.

Why does a county like Cavan need quality journalism?

Local newspapers are vital to our communities and provide factual sources to inform views and policy decisions.

Quality, professional journalism is essential for a healthy democracy and supports the wider news eco-system for broadcasters and digital publishers.

Without newspapers and their digital content, many important stories would not be told.

It is true journalism also faces challenges from the cost of living crisis, the growing commercial power of tech platforms, the legacy of the pandemic, which hit advertising and circulation, and the soaring cost of newsprint, which has increased 140% over the last 18 months.

Zero VAT would allow Irish news publishers to help secure their future by investing in the business of journalism, giving greater value to readers and preserving jobs. News publishers need to invest in digital transition.

Ending VAT would help support their transformation to competitive online models.

The move would cost the Exchequer €18.5 million but the consequences of not doing so will become apparent sooner rather than later.

That's the reality.