The chancellor of the Exchequer, George Osborne, has announced that books or other printed material, will continue to be exempt from VAT but digital and audio books are to suffer the increase in VAT from 17.5% to 20% from 4 January 2011.
Bridget Shine, executive director of the Independent Publishers Guild,(IPG) agreed. "We are pleased ─ and relieved ─ that there will be no VAT on print books and we welcome the reduction in corporation and small companies tax."However, she joined with those who were concerned over the increase in VAT on audio and digital books, confirming the IPG planned to lobby the government over the discrepancy.
Trade relieved over VAT, despite 'catastrophic' increase for audio and e-books: