The Sri Lanka Book Publishers’ Association has warned that taxes imposed on printed books are placing growing pressure on the publishing industry, with an estimated 50% to 60% of authors turning to other occupations over the past three years.

The association also claims that around 40% of publishing companies have exited the industry during the same period.

According to the association, the introduction of VAT and other taxes on printed books in January 2023 has contributed to a sharp increase in book prices, resulting in declining sales.

Board Member of the Sri Lanka Book Publishers’ Association Gamini Moragoda called on the government to urgently remove VAT and other taxes imposed on printed reading materials, warning that the continued taxation could have serious long-term consequences for Sri Lanka’s literary and publishing sectors.

Publishers call for removal of VAT

Moragoda said VAT had never previously been imposed on reading books in Sri Lanka and described the tax as an unfair burden on readers, particularly parents purchasing books for their children.

He said the association had repeatedly raised the issue with government authorities and urged policymakers to reconsider the tax.

“We are asking the government and authorities to remove this VAT. We can clearly demonstrate that its removal would not result in a significant loss of government revenue. We need an opportunity to present those figures,” Moragoda said.

He further claimed that around 95% of countries worldwide do not impose taxes on printed books, while no country in Asia imposes such taxes on printed books.

Warning over future of literary sector

Moragoda warned that allowing the tax to remain for another decade could severely affect Sri Lanka’s literary sector and discourage authors and publishers from remaining in the industry.

He said the rising cost of books was also placing an additional burden on families at a time when many parents were already struggling with increased living expenses.

The association had previously submitted a petition signed by visitors at the country’s major book exhibition, calling for the removal of VAT on reading books. Representatives of the association had also held discussions with government ministers on the matter.

The Publishers’ Association said the removal of VAT and other taxes on printed books would help reduce book prices, encourage reading and protect the country’s publishing and literary industries from further decline.