Sri Lanka’s book industry yesterday renewed its call for books to be exempted from VAT and submitted a proposal to be considered for inclusion in in Budget 2025.

Urging the government to consider the financial and social ramifications of taxing sources of knowledge and learning, a collective associations representing publishers, writers, retailers, importers and exporters has pointed out that books were exempt from VAT in the past, and called for the restoration of the status quo ante.

In their proposal, four Associations have said that with all inputs for the publishing industry, with the exception of local labour being imported, Sri Lanka’s book industry is already taxed at 33.045%, and the imposition of a value-added tax (VAT) of 18%, at the point of sale, has made books unaffordable to many.

Addressing a media briefing, Sri Lanka Book Publishers Association (SLBPA) President Samantha Indeewara pointed out that the NPP leaders, while in opposition, had taken exception to VAT on books, and had asked the government of the day to abolish it. “We are, therefore, cautiously optimistic that the concerns of the book industry will be addressed in the next Budget,” he said.

“We have brought to the government’s attention the numerous anomalies affecting the industry that are directly attributable to the imposition of VAT on books,” he said. “The majority of publishing companies are not eligible to pay VAT, and, therefore, cannot have VAT deducted when they pay on material needed for producing books locally,” Indeewara said, noting that only about 12 large publishing and printing companies were eligible to pay VAT.

However, many of the smaller publishers sell their books via bookshops and distribution networks run by large companies, and the imposition of VAT results in all of their books being taxed, he said.

Another matter of serious concern was that by imposing taxes on books, Sri Lanka continued violate the UNESCO Florence Agreement of 1950, which it signed as a Contracting State. The UNESCO Florence Agreement is a treaty that binds Contracting States not to impose customs duties and taxes on certain educational, scientific, and cultural materials that are imported.

Associated with the SLBPA and joint signatories to the proposal submitted to the government are the Sri Lanka Writers Association, the All Ceylon Booksellers Association, and the Sri Lanka Book Importers and Exporters Association.