SHARE
COPY LINK

BOOKS

Italy plans tax breaks to save struggling bookshops

Italy will introduce tax credits for bookshops, with independent stores eligible for the biggest breaks.

Italy plans tax breaks to save struggling bookshops
Rome's Libreria Croce, which shut down in 2011. Photo: Filippo Monteforte/AFP

It’s a bid to help save Italy’s bookshops, which “are at continual risk of closure all across the country,” according to Culture Minister Dario Franceschini.

The scheme, which the senate budget committee approved this week, will reduce council, property and waste taxes on bookshop owners. If they don’t own their premises, they can also claim a tax credit on their rent.

Independent shops will be eligible for up to €20,000 in tax credits, while chain stores are limited to €10,000.

In an amendment to the 2018 budget, the government allocated €4 million for the scheme in 2018 and €5 million every year from 2019.

“Protecting bookshops has a strong social value, as well as a cultural one,” Franceschini said.

Italy’s association of independent bookshops, the Sindacato Italiano Librai, welcomed the measure, saying that bookshops not only benefit customers but also help support authors, editors, printers and thousands of others involved in producing books.

The association’s president, Cristina Giussani, said she hoped that Italy would introduce additional measures to support its book trade, “a pillar of traditional Italian commerce” that is under pressure from online booksellers and chain retailers.

Italy is home to some of the world’s most unique bookshops, including Milan’s glamourous art and design hub 10 Corso Como and the charmingly chaotic Libreria Acqua Alta in Venice, where new and used books are stacked in gondolas.

According to the latest statistics available from 2015, nearly 60 percent of Italians don't read a book from one year to the next, with almost a tenth of families owning no books at all.

 

For members

TAXES

Beskæftigelsesfradraget: What is Denmark’s employment allowance?

Denmark's government may soon announce changes to its tax reform plans, which will give all wage earners a bigger employment allowance. What is this and how will it affect foreigners' earnings?

Beskæftigelsesfradraget: What is Denmark's employment allowance?

What is the employment allowance? 

The Beskæftigelsesfradraget (from beskæftigelse, meaning employment, and fradrag, meaning rebate) was brought in by the centre-right Liberal Party back in 2004, the idea being that it would incentivise people to get off welfare and into a job.

Everyone whose employer pays Denmark’s 8 percent AM-bidrag, or arbejdsmarkedsbidrag, automatically receives beskæftigelsesfradraget. Unlike with some of Denmark’s tax rebates, there is no need to apply. The Danish Tax Agency simply exempts the first portion of your earnings from income taxes. 

In 2022, beskæftigelsesfradraget was set at 10.65 percent of income with a maximum rebate of 44,800 kroner. 

How did the government agree to change the employment allowance in its coalition deal? 

In Responsibility for Denmark, the coalition agreement between the Social Democrats, the Liberals and the Moderate Party, the new government said it would set aside 5 billion kroner for tax reforms.

Of this, 4 billion kroner was earmarked for increasing the employment allowance, with a further 0.3 billion going towards increasing an additional employment allowance for single parents.

According to the public broadcaster DR, the expectation was that this would increase the standard employment  allowance to 12.75 percent up to a maximum rebate of 53,600 kroner. 

How might this be further increased, according to Børsen? 

According to a report in the Børsen newspaper, the government now plans to set aside a further 1.75 billion kroner for tax reforms, of which nearly half — about 800 million kroner — will go towards a further increase to the employment allowance. 

The Danish Chamber of Commerce earlier this month released an analysis in which it argued that by raising removing all limits on the rebate for single parents and raising the maximum rebate for everone else by 20,300 kroner, the government could increase the labour supply by 4,850 people, more than double the 1,500 envisaged in the government agreement. 

According to the Børsen, the government estimates that its new extended allowance will increase the labour supply by 5,150 people.  

SHOW COMMENTS