Allan Guthrie

Across most of Europe, e-books are taxed at full national value-added rates, which reach 25 percent in Sweden, Denmark, Hungary and other countries. Printed books, benefiting from an industry lobby, are taxed at a fraction of the full rates — and not at all in Britain.

It seems, Mr. Seaman said, that the value-added tax gap “discourages traditional publishers from innovating by effectively subsidizing them not to.”

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