Spain to reduce culture tax from 21% to 10%

 

Spain will shortly announce a reduction of the country's IVA rate on culture from 21% – the highest in Europe – to 10%, according to a report in Spanish daily ABC.

The move comes over 18 Months since the government chose to drastically increase the IVA rate on nearly all cultural goods and services from 8% to 21% in September 2012.

The higher rate currently applies to e-books, DVDs, music CDs, as well as cinema and theatre tickets, but books, newspapers, magazines and public museums pay a reduced rate of 4%.

Spain's culture minister Jose Ignacio Wert has faced fierce criticism for the 21% tax, most recently from the Spanish film industry at last month's Goya awards.

Recommended Reading :

* Spain reiterates opposition to IVA hike

* IMF says Spain needs to raise taxes after election year cuts