Senator Kate Lundy said today that the Assistant Treasurer, Senator Rod Kemp, refused to answer Opposition questions in the Senate about the likely impact of the GST on retail book sales.
“The Government has been unable to provide detail about the supposed deal with the Democrats on additional compensation with respect to books,” Senator Lundy said.
“The deal could mean that the Government will receive more money from collecting the GST on books than the vast majority of authors will receive in royalties.
“Under the current taxation regime, books are not taxed. In fact, books are specifically excluded from the wholesale sales tax regime.
“When a GST of 7 per cent was introduced in Canada, there was a 12 per cent drop in retail book sales. There will be a severe negative impact on national literacy and education if a GST is levied on books. This is the main reason why in 18 of the 24 countries which have consumption taxes, books are either zero rated or else taxed at a lower rate than other commodities.
“The existing impact of international online book wholesalers on the Australian book retailing industry will be exacerbated as the relative cost advantage of companies like Amazon.com and Barnes and Noble increases.
“The Government should come clean and admit that the GST is a tax on learning,” Senator Lundy said.
Contact Simon Tatz on 0418 488295
